A call has gone to National Insurance Commission (NAICOM) to be more interested in what companies are doing rather than how much capital they hold.

The Executive Director, Centre for Pension Rights Advocacy, Barrister Ivor Takor who made this call at the 3rd National Conference of the National Association of Insurance and Pension Correspondents (NAIPCO) in Lagos, said to develop the industry, the regulator must enforce full disclosure to stakeholders.

Takor said it will be difficult to protect the interest of stakeholders and the integrity of the industry if the regulator doesn’t understand what a company is doing, adding that the regulator needs to make sure that investors get the right type of information without which the industry will become less attractive to investors. 

He stated that some policyholders were still not sure that insurance companies will pay claims when the need to do so arises and that they still have a mindset on what some refer to as hidden clauses in insurance, which are brought to the attention of policyholders only when claims are made.

“Policyholders and maybe shareholders need to have sensible risk returns profiles otherwise the industry will not be viable in the long run,” Takor said explaining that “the Federal Government has pegged the capital base of mega insurance firms at N15 billion. The regulator knows the industry better and has reasons for whatever decisions it takes, which I believe are for the growth and development of the industry. 

The regulator to me should be more interested in what companies are doing rather than how much capital they hold. To develop the industry, shareholders, policyholders and the regulator must understand what companies are doing.”

Takor frowned against greed among stakeholders, urging them to be ready at all times to voluntarily plough back some of the profits the company makes back into the development of the company, instead of waiting for it to come through regulatory enforcement, since “regulatory enforcement comes with sanctions for non-compliance.”

Takor acknowledged the emerging level of aggressive marketing as against what is obtained on the part of management and employees as against what was obtained in the past, which he said would help to develop the industry.

“On the other hand, if insurance companies have two faces, that is the face of a dove when marketing and the face of a lion when claims are due for payment, people will keep away from insurance companies and resort to insuring all their insurable risks with God through prayers. Premium should be affordable,” he added.