The social insurance Commission (NAICOM), the trade regulator, has unconcealed plans to sanction operators that contravene the native content policy by relinquishment businesses offshore, while not totally utilizing native capacities during this 2017.
The Commission unconcealed this in an exceedingly circular
titled: “Utilization of In-Country Capacities of Nigerian Insurers, Reinsurers
and Pool before Foreign Facultative insurance,” dated December twenty two,
2016, and signed by Director, Authorization and Policy, NAICOM, Pius Agboola.
The circular scan partly, “The attention of the Commission
has been drawn to recent practices within which insurance practitioners fail,
neglect or refuse to think about and totally use relevant in-country capacities
of insurance/reinsurance establishments like pools, reinsurers and different
approved local/recognized insurance capacities, before applying for approval to
cede sure proportion of some risks offshore.
According to Agboola, “In some things wherever the pools,
insurers or reinsurers square measure offered participation, the establishments
square measure either offered lowest proportion below their capability or
informally restricted and/or compelled to just accept under their various
capacities for the aim of justifying relinquishing of the risks offshore.”
He supplemental that “this unethical observe that undermines
our collective resolve to confirm full utilization of accessible in-country
capability in line with domestication and native content policy contravenes extant
insurance laws and rules and shall therefore not be tolerated henceforward.
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“The Commission has ascertained that some Insurance
establishments have unsuitably taken to themselves the authority to unilaterally
exclude some insurers over alleged outstanding claims. it's so become
imperative to cue all insurance establishments that they're needed to report
any alleged non-settlement of claims to the statutory grievance/complaint
redress mechanisms (the Commission’s criticism Bureau) for applicable action
before determination of their participation (Refer to our Circular
NAICOM/CB/MDM/001 of thirteenth Gregorian calendar month 2015).
“We herewith tell that: All insurance establishments square
measure needed to confirm that Nigerian Insurers, Reinsurers and Pools (in the
Commission’s records) should be offered and allowed to volitionally decide the
proportion of the danger they need to just accept (subject to their various
capacities), before any application for approval for offshore placement of the
surplus. Secondly, all recognized insurance treaties/arrangements and extra
capacities offered by native Reinsurers/Pools should be totally utilized before
excess thought for offshore placements. Thirdly, all off-the-system or informal
directives to co-insurers, native reinsurers and pools to just accept under
their desired offered capacities square measure herewith prohibited. Please
guarantee strict compliance as we'd not tolerate any breach of those
directives. Failure to try and do therefore can henceforward lead to the
imposition of applicable regulative actions still as declinature/ rejection of
such requests,” he assured.
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