NAICOM Releases 2010 Insurance Policy Guidelines

The National Insurance Commission (NAICOM) has released the 2010 Insurance policy and operational guidelines to operators and it shall form part of the regulatory and supervisory tools for the year.

A statement signed by Lucky Fiakpa, Assistant Director, Corporate Affairs, NAICOM said what NAICOM has done is in accordance with the provisions of section 49 (1) of Insurance Act of 1997.

Basically, "the guidelines, as issued by NAICOM, set out the business practice that would be strictly adhered to by every insurance operator in Nigeria effective January 1, 2010."

The handbook which contains guidelines on corporate governance issues, unethical practices issues, and other industry concerns has already been distributed to all Insurers, Reinsurers and Intermediaries in the country is among others.

The statement said the commission hopes the guidelines will strengthen the operational standards within the insurance industry.

"It is also aimed at improving the quality of performance of Insurers, Re-insurers and Insurance Intermediaries and, to ensure the institutionalisation of effective corporate governance structure for insurance companies; Re-insurance companies; Insurance Brokers, Loss Adjusters and Agents," he said.

He said: "Significantly, the early release of the guidelines for 2010 underscores NAICOM's resolve to sanitise the industry and rid it of unethical practices. The Commission has also warned insurance operators to ensure compliance with the guidelines as failure shall attract varied sanctions."

As the Insurance Industry's regulatory body, NAICOM is empowered to develop and issue policy and operational guidelines to guide the practice of operators yearly.