SIP: Again, NAICOM cancels policy

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The National Insurance Commission (NAICOM) has ordered the withdrawal and cancellation of Operational Guidelines on State Insurance Producers (SIP).

This came barely 24 hours after a town hall meeting of top management of NAICOM and the Nigerian Council of Registered Insurance Brokers (NCRIB).

This withdrawal too is coming on the heels of the Commission’s cancellation of the Tier Based Minimum Solvency Capital (TBMSC).

While the commission introduced the SIP business model to bring about  300 per cent insurance penetration in two years and increase the revenue base of state governments and insurance profits, the TBMSC was aimed at raising insurance company’s capital base, curbing insolvencies and ensuring prompt claims payment, among others.

The cancellation of the SIP came after brokers under the auspices of NCRIB threatened to sue NAICOM.

Consequently, the duo met and set-up an ad hoc committee to review the SIP guideline, leading to the commission withdrawing and cancellation of the operational guideline of the SIP barely 24 hours after.

The council viewed the policy as capable of kicking them out of business and threatened to seek legal redress.

A circular signed for the Commissioner for Insurance by the Director, Policy and Regulation, Agboola Pius, titled: Withdrawal of circular on State Insurance Producer Operational Guidelines, with reference number, NAICOM/DPR/CIR/20/2018 December 20, 2018 was sent to all insurance institutions.

The circular reads: “Pursuant to the powers conferred by the enabling laws, the Commission hereby withdraws and cancels the Circular dated November 19, 2018 with reference number NAICOM/DPR/CIR/17 /2018 and titled “Operational Guidelines on State Insurance Producer”.

NAICOM stated that the withdrawal and cancellation take immediate effect.

NCRIB expressed its appreciation to NAICOM for the withdrawal, stating that it would lead to the much-desired progress and cohesion required for the industry’s growth.

NCRIB President, Mr Shola Tinubu lauded the Commissioner for Insurance, Alhaji Mohammed Kari and his team for considering NCRIB’s plea. He described the Commission as a listening regulatory body which has  demonstrated the desire to grow the industry to contribute meaningfully to the nation’s economic growth.

Tinubu, in a statement noted that the gesture would further enhance the council’s confidence in the leadership of NAICOM, stressing that the confidence reposed in NAICOM was never betrayed.

“The Council appreciates NAICOM for the magnanimity in withdrawing the guideline as it will lead to the much desired progress and cohesion required for the industry’s growth.

“We are back on the drawing board to chat a way forward in deepening insurance penetration and entrenchment of MDRI among Nigerians to ensure more financial inclusion and make insurance a front burner in growing the nation’s economy as it is obtainable in other climes.

“It is pertinent to note that the current leadership of NAICOM has over the years demonstrated unprecedented understanding and all-inclusive regulatory system whereby the council has always been carried along in formulation of policies and guidelines before it eventually become operational,” he said.


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