By Favour Nnabugwu

Definite about protecting the interest of Nigerian insurance companies operating outside the shores of this country and to also project the image of the nation in the operations, the National Insurance Commission, NAICOM has began moves to sign Memorandum of Understanding, MoU with eight host countries to Nigerian insurance companies.

It was on this premises that Mr Fola Daniel, Commissioner for Insurance on behalf of Nigerian insurance industry, weekend, signed an MoU with Ghana Commissioner of Insurance, Mrs Nyamikeh Kyiama of behalf of that country. The other countries that are also playing host to Nigerian insurance companies include Sierra Leone, Gambia, Liberia, Sao Tome & Principe, Rwanda, Cameroon and Uganda

Nigeria’s Fola Daniel said that the aim of the MoU was to formalize and strengthen the existing relationship between the two insurance markets through information sharing  and investigative assistance which he said conformed with the international Association of Insurance Supervision, IAIS.

According to him, “This is the first MoU with a fellow regulator in Africa and indicate the reliance that both regulators place on the quality of regulatory standards administered in the other’ jurisdiction”

Daniel during the signing witnessed by representatives of the Central Bank of Nigeria and the Ministry of Finance, Mr Oluwatoyin Jokosenumi of the Department of FSS 2020, and mr Ayo Fadola. “The MoU underlines NAICOM’s goal to build effective working relationship with regulators in the West African region and beyond”

The commission had issued licenses to 12 insurance companies to open offices abroad since 2007. The companies that have crossed the borders are Industrial & General Insurance Plc; Law Union & Rock Plc; Mutual Benefits Assurance; Regency Alliance; Nem Insurance, Equity Assurance, Intercontinental Wapic, International Energy Insurance, Standard Alliance Plc; Capital Express, NICON Insurance and Continental Reinsurance Plc.

He stated, “Insurance industry like other components of the financial system is changing in response to a wide range of social and economic forces. In particular, insurance and insurance-linked financial activities are increasingly crossing national and sectorial boundaries. Consequently, insurance supervisory systems and practices must be continually upgraded to cope with those developments to mitigate possible financial and systemic stability concerns arising from the insurance sector as they emerge”