The National Insurance Commission (NAICOM) has charged shareholders to closely monitor insurance companies and hold board of directors accountable for any problem in these firms.
The commissioner for insurance/CEO, NAICOM, Mr. Sunday Thomas, who made the call when members of Independent Shareholders Association of Nigeria (ISAN) visited the commission’s headquarter in Abuja.
urged shareholders to hold members of board of their companies responsible for most problems suffered by their companies, stressing that, as investors, they should be interested on how their investments are managed.
The commissioner tasked them to promote corporate governance by ensuring competent individuals are elected as board members of their companies.
He implored them to take responsibility of internal evaluation of board reports and comport themselves during annual general meetings, even as he charged shareholders elected to internal audit committee to exercise their duties and ensure quality control.
He had earlier tasked shareholders to educate themselves on International Financial Reporting Standard (IFRS) 17, which will commence by June 2023,
so that they can effectively monitor financial positions of their companies.
Thomas informed the shareholders that IFRS 17, would change how insurance companies present and report their financial statements, while urging them to consult their companies on how they could be trained on the new reporting standard.
He noted that, with the adoption of IFRS 17, financial statements of insurance companies would no longer carry gross premium, though the balance sheet will remain the same.
The Insurance Industry regulator, who was excited by the visit, told the shareholders that NAICOM needs a robust relationship with them so as to effectively regulate the industry.
He submitted that NAICOM is committed to protection of all stakeholders, which include: policyholders; shareholders and residual owners.
Responding to the shareholders demand for better value of their shares at the Nigerian Stock Exchange, Thomas said, investors in insurance sector need to be very patient so as to maximise their profits, adding that, there is beautiful future for the sector.
Responding, the national coordinator, Independent Shareholders Association of Nigeria(ISAN), Moses Igbrude applauded NAICOM for the meeting, whilst seeking involvement of shareholders in major decisions taken on companies.
He expressed misgivings on how some foreign firms were allowed to take over 100 percent stakes in some companies without the involvement of minority shareholders.
While imploring NAICOM to work together with insurance practitioners to promote insurance education, he stressed that, most Nigerians don’t buy insurance due to wrong perception arising from low awareness.
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