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NAICOM To Entrench Corporate Governance In Insurance Sector

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The National Insurance Commission (NAICOM) is currently considering critical measures towards ensuring effective and efficient corporate governance for the insurance sub-sector of the nation’s economy. The ongoing exercise is part of the efforts to review the revised code for the insurance sub-sector.
Speaking at a breakfast meeting of the Society for Corporate Governance Nigeria (SCGN) in Lagos yesterday, commissioner for insurance, Mr. Mohammed Kari, highlighted some of the key measures being looked at to include, tenure and re-election of directors, conflict of interest, continuous training for directors, annual assessment of directors and company investors’ portal. He did not give details of the level or extent of work on the review process.

Kari acknowledged that corporate governance reform was vital in securing an attractive environment to both domestic and foreign investors.
He identified the influx of foreign investors, offshore transactions by operators, group structures, mergers & acquisitions, and overbearing influence of some directors as some of the challenges trailing corporate governance in the Nigerian insurance industry in particular and the economy at large.
Currently it is only non- independent directors that are tenured, but going forward, Kari promised that tenure would be introduced for all directors.
He also said one of the cardinal objectives of the corporate governance is to ensure that appropriate measures and procedures were in place to effectively manage conflict of interest regarding the members of the board and management/other staff.

The NAICOM boss said all persons who occupied the position of managing director/CEO would now be empowered by the code to performs duties properly associated with their offices as well as ensure that the split between ownership and control was appropriately reinforced and strengthened by the time the review was released.
“Going forward, the test of whether the code would apply to you would not depend on your size of your operation but your personally in law. All limited liability companies shall have the same application of the code, “ he assured.



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