By Cynthia Alo

The National Insurance Commission, NAICOM, has identified weak corporate governance as a key problem in the development of Nigeria’s insurance industry.

Acting Commissioner for insurance, Mr Sunday Thomas, who stated this at the second edition of Insurance Directors Conference, in Lagos, said the position of the board of directors is key in achieving a high level of efficiency of the corporate governance structure.

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He stated: ‘‘The low level of effectiveness of corporate governance oversights in the insurance sector remains one of the major regulatory concerns to the Commission. This is for the simple fact that the failure of corporate governance in the year’s past has played a prominent role in the death or distress of most corporate organizations the world over, Nigeria inclusive.”

He further stated that over the years, the Commission has made attempts at entrenching good corporate governance culture in the insurance sector.

Explaining further, he said: “The board is expected to ensure the financial soundness and general wellbeing of the organisation by monitoring the management, to guarantee effective and efficient deployment of human and capital resources in the overall benefit of all stakeholders. The observance of this role has been lacking in some of our companies and which has contributed in no small measure to the challenges facing these companies today.”

Vanguard