Some experts in the insurance industry have commended the National Insurance Commission (NAICOM) for the cancellation of the operational license of UNIC Insurance Plc.
According to the insurance experts, the commission acted in line with extant laws and regulations. Lead director, Transparent Protection Ltd/Guarantee (TPL), Dr Sam Onyeka, said the cancellation of the operational license of UNIC Insurance Plc by NAICOM was the right thing to do.
He also said the insurance company had failed to meet the minimum capital and solvency as required by sections 9 and 24 of the Insurance Act of 2003. According to him, there are several outstanding claims against the company and five outstanding verified claims are enough to warrant license cancellation under section 8 of the Insurance Act 2003.
He said, “Our only concern now is how to protect the interest of policyholders and other stakeholders as the company goes through the process of liquidation. We hope that the process will not be long drawn and inconclusive as always is the case.’’
Another insurance expert, Mr Ekerete Gam-Ikon, said the cancellation of the license of UNIC Insurance did not come as a surprise. Gam-Ikon said that the insurance company had become troubled after the last attempt by the owners to get a core investor.
“However, with this action after the inability of the Board and Management appointed by the regulator to address the wrongs, it does seem a good time to convey a more convincing message to the insuring public. This message should be about the state of the insurance industry in the country.Is there a timeline as per when we will say confidently that we have a strong insurance sector?
“I think NAICOM can come out and clearly inform and update the public about what its plans are about the other financial weak insurance companies,’’ he said.
NAICOM recently withdrew the company’s operational license and appointed one Hadiza Gimba of Suite D7 Awmar Plaza in Gudu Abuja, as the liquidator to wind up the affairs of the company.