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Insurers lament multiple penalties for single infraction

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By Favour Nnabugwu

INSURANCE and reinsurance companies have raised alarm over multiple penalties for same infraction by regulatory authorities in Nigeria.

Commissioner for Insurance, Alhaji Mohammed Kari, disclosed this at the just concluded National Insurance conference organised by all the arms of the sector and the Commission in Abuja. He said that insurance companies have expressed the burden of regulatory authorities slamming penalties on them for same breach.

The Commission occasionally works with other regulatory bodies, namely Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) to regulate companies listed on the floor of the stock exchange among others.

He said that the regulatory body has been bombarded with complaints from insurance operators over the burden of having to pay fines and meet other requirements of the different regulators.

Kari said: “Most irritating, according to operators, are the multiple penalties that may arise from the same infraction. Regulators now are even venturing into other sectors, usurping the role of other regulators without due regard to the established laws. Operators in most sectors are regulated by up to three and sometimes four financial regulators, with multiple requirements to each and in most cases similar and with “either/or” options, which defeats the regulatory norm of “specific oversight” in financial regulation.”

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