Fola Daniel, the Commissioner for Insurance, has said that the capital base of insurance operators had risen to N500 billion. He made the disclosure in a keynote address at a seminar on Corporate Governance for Insurance Directors.

Daniel said the improved capital base was one of the achievements recorded by the ongoing reforms in the industry.

“Some of the reforms carried out by the National Insurance Commission (NAICOM) from 2005 to 2007 have yielded positive dividends and moved the industry forward. Operators now have more funds at their disposal to do more businesses,” he said.

Daniel noted that before the reforms, the industry had many challenges, including inadequate tools and capital to handle some businesses. He said other challenges were poor governance practices, poor financial performance and low level of insurance awareness.

Daniel said that some of the benefits of the reforms were re-branding of the sector to enhance improved corporate and industry image as well as underwriting capacity to participate in big and specialised businesses.

Others, he added, were the establishment of Nigerian insurance subsidiaries in 11 African countries and expanded business opportunities, through compulsory insurances, as well as the Nigerian Oil and Gas Content Act 2010.

Daniel said that although the reforms had effected changes in legislations and rules, it had not been easy changing attitudes, dispositions and practices.

He explained that the seminar was aimed at raising the level of corporate governance in the industry and promote the adoption of the appropriate code on the subject launched by NAICOM in 2009. Mr Umaru Ibrahim, Acting Managing Director, Nigeria Deposit Insurance Corporation (NDIC), suggested that directors, and not the institutions should be sanctioned for any misdeeds. Ibrahim, represented by Dr Jacob Afolabi, NDIC’s Deputy Director and Head, Research Department, urged directors to imbibe good corporate governance in the management of their firms.

He said good corporate governance had become the order of the day globally due to the recent global financial crisis.

Ibrahim urged NAICOM to continue to encourage good corporate governance among key players in the industry.

Dr Oladimeji Alo, Managing Director, Excel Professional Services Ltd, said the seminar would be a yearly event to ensure that directors of insurance companies lived up to expectations. He said the seminar would be interactive to enable participants to share experiences.
The seminar was organised by NAICOM in collaboration with Excel Professional Services Ltd.