By ROSEMARY ONUOHA

The National Insurance Commission, NAICOM, said it will sanction erring insurance operators as it has vowed to criminalise breach of code of conduct of the profession.

Commissioner for Insurance, Mr. Mohammed Kari who disclosed this, said NAICOM has been empowered by its law to treat breach of code of conduct as a criminal act and would not hesitate to implement the statute if operators continue to flout necessary rules.

Kari said this while presenting his keynote address at the 2015 Chartered Insurance Institute of Nigeria (CIIN), Professional forum held in Abeokuta, Ogun State.

Kari said that NAICOM is empowered by section 39 of the Insurance Act of 2003 to enforce the code of ethics of the market. He added that if the industry does not uphold the tenets of their profession, the commission will have no option than to enforce the laws.

According to Kari, the code has punishment and sanction for companies that are found wanting, stressing that it is a criminal offence for a company licensed by the regulator to cut rate which is against the ethics of the profession.

He said that market indiscipline has become the order of the day and if not taken seriously, the implication of the indiscipline is that it will help to destroy the industry.

He noted that the industry cannot achieve the success it looked out to achieve at the just concluded Insurance Industry Consultative Council (IICC) forum held recently in an atmosphere where there is distrust, unprofessionalism, and without unity of purpose.

He urged the industry operators to imbibe the spirit of professionalism by doing what is morally right in the industry, adding that the challenges this time are huge and call for improved service delivery.

kari asked the operators to proffer solutions to these begging questions: What does change mean to the Insurance Industry?, how prepared and ready is the industry to take opportunities around the industry?, could the industry continue to conduct business as usual and expect a different result in the new era of change?, what are the imperative of corporate social responsibility in the face of changing environment and how best do they enhance insurance value chain in a quest for market penetration and insurance industry desire?

He urged the operators to position themselves for opportunities in the oil, aviation and other sectors that have been created by the government, adding that the commission is focused on the protection of policy holders and the industry in general.