By Oluwaseun Sonde
The Federal Government has called for the reposition of Insurance sector and implementation of policies to strengthen the industry and enhance its contribution to the nation’s Gross Domestic Product (GDP) and the economy at large.
Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed made the call when the newly inaugurated Governing Board of National Insurance Commission NAICOM, paid a courtesy visit to her office in Abuja on Monday.
According to her, "The initiative to pay this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the Ministry towards realizing the mandates of NAICOM.
"The Board which also comprises the Management should develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s GDP and to the economy at large", Ahmed said.
The Minister urged members to be mindful of existing guidelines regulations and circulars that guide the operation and conduct of the Governing Boards of Federal Government Parastatals, Agencies and Commissions and strictly adhered to them.
"The Board has to develop strategies to systematically build the capacity of members through Workshops, Seminars, Study Tours, etc. to enable effective contribution towards the growth of the Industry, especially as some members were not drawn from the Insurance Sector".
She added that it is of utmost importance for the New Board and the Management of the National Insurance Commission to work harmoniously together to actualize the mandate of the Commission.
“Deepening Insurance Penetration in the Country: There would be a need to achieve more insurance penetration in the country. In this regard, there is a need to evolve new insurance products and policies.
“The Board and the Management must ensure that the condition of service and welfare of the staff creates a conducive atmosphere to promote staff productivity and engender industrial peace.
Ahmed further urged Board members to commit to develop and implement policies that would promote the reputation of the Industry through prompt payment of claims.
"Your target should be to take the Industry to greater and enviable heights during your tenure".
She restated the Ministry’s commitment to continue to assist and support the Commission towards realizing its mandate for the overall benefits of the nation.
Earlier, the Chairman of NAICOM Governing Board, Dr. Abubakar Sani has seeked FG's support to effect major restructuring of the insurance industry including the elimination of non-performing companies in the sector.
He specifically intimated the Board’s plan to carry out specific exercises aimed at sanitizing the insurance industry in the country, stressing that enforcement of the code of ethics for companies in the sector is underway.
"We shall enforce the professional code of ethics among the insurance entities, and strengthen their corporate governance which the Board believes will sanitize the market.
”The NAICOM Board will in due course revisit the matter of recapitalization of the insurance industry and will clean up its act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies.
"The board is working to sanitize the market and will be taking out companies that are not measuring up to expectations” Dr Sani added.
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