By Patience Saghana
The National Insurance Commission (NAICOM) has released policy guidelines for the  insurance industry  in 2010.
The commission in a release to Vanguard said the 2010 Insurance policy and operational guidelines shall form part of the regulatory and supervisory tools for the year in accordance with the provisions of section 49 (1) of Insurance Act of 1997.

The guidelines, according to NAICOM, would like the Bible,  guide operators’ business practice with effective from January 1, 2010. It has already been distributed to all Insurers, Reinsurers and Intermediaries in the country geared towards strengthening operational standards within the insurance industry.

Besides, the policy guidelines is also aimed at improving the quality of performance of Insurers, Re-insurers and Insurance Intermediaries and, to ensure the institutionalisation of effective corporate governance structure for insurance companies; Re-insurance companies; Insurance Brokers, Loss Adjusters and Agents.

Appreciatively, the early release of the guidelines for 2010 underscores NAICOM’s resolve to sanitise the industry and rid it of unethical practices. The Commission has also warned insurance operators to ensure compliance with the guidelines as failure shall attract varied sanctions.

The commission had released a number of policy guidelines to the sector to direct and ensure that operators conduct their business within the industry best practices.

National Pension Commission (PenCom) had also jointly released a regulation on annuity business in Nigeria whilst  NAICOM has rolled out Guidelines for the Insurance Industry on participation in Oil and Gas. NAICOM had also issued a guideline to both underwriters and intermediaries to adhere strictly to the restrictions on offshore insurance contained in Insurance Act 2003.

In section 16(2) of the 2009 Insurance Policy Guidelines for intermediaries, the Commission warns, “All insurable risks associated with oil and gas business including prospecting, exploration, drilling, construction, shipping, distribution, marketing, transportation, etc, shall be placed 100 percent through an insurer in the Nigerian insurance industry duly registered under the Insurance Act 2003.”

Further in the guideline, the process and procedure for offshore placement is stated thus, “The insurer would place part of the risks first with each and other domestic insurers and reinsurers to their maximum capacities before placing the balance in the international market through an internationally established reinsurance arrangement.”

The commission had as well released guidelines for the implementation of Sections 64 and 65 of the Insurance Act 2003, on the compulsory insurance of public buildings and buildings under construction.