By Favour Nnabugwu

FOR effective supervision and regulation of insurance companies listed on the Nigerian Stock Exchange, the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC) have agreed on the need to collaborate on regulatory actions.

The two regulatory bodies have harped on an improved synergy that will enable close interface at the highest level.

This was part of the agreement reached last week when the Director-General of SEC, Mr. Mounir Gwarzo, and his management team paid a working visit to NAICOM to discuss areas of mutual interest and collaboration by the two regulatory bodies in the best interest of all stakeholders.

Gwarzo said the SEC is ready to commence work whenever NAICOM comes out with the modalities for Referral Agency.

Commissioner for Insurance, Mohammed Kari, said that NAICOM is at the final stage of drafting the guidelines and would soon be exposed to SEC for its inputs.

Kari re-emphasized the need for the two agencies to work together for better discharge of their responsibilities and he appreciated SEC for enabling entities under its supervision as distribution channel for insurance products.

The two bodies hopes to collaborate in the area of enforcement actions against insurance companies that misuse funds raised from the capital market.

The Deputy Commissioner of Insurance (Technical), NAICOM, Mr. Muhammad Kari, had highlighted some cases currently being investigated by NAICOM where funds were raised from the capital market and applied for other use by some insurance companies.

“Some of the companies we have primary responsibility to regulate, also have one or two things to file or do with SEC by virtue of the fact that they are quoted on the Nigerian Stock Exchange.

This, therefore makes it imperative for the two regulators to collaborate to ensure effective supervision and regulation of the entities they have to deal with”, the Commissioner said.