Enforcement of insurance Sector Corporate Governance begins June 1

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There are indications that the implementation of Insurance industry’s corporate governance guidelines will commence before the end of the first half of this year.

The National Insurance Commission (NAICOM) which gave the indication has put June 1, 2021 as commencement date.

The Commission had in recent publication on its website noted that the guidelines  was issued on March 17, 2021 and had therefore implored all insurance and reinsurance firms to comply with the guidelines and the Nigerian Code of Corporate Governance 2018.

According to NAICOM, non-compliance with the Nigerian Code of Corporate Governance (NCCG) 2018 and this guidelines shall be a violation of Section 49(1)b of the National Insurance Commission Act 1997 and attracts penalty under Section 49(5) of the Act.

NAICOM maintained that its principal object is to ensure effective administration, supervision, regulation and control of the insurance business in Nigeria, adding that Section 11 C and 51 C of the Financial Reporting Council of Nigeria (FRCN) Act, 2011 confers on the FRCN the power to ensure good Corporate Governance Practices in public and private sectors of the Nigerian economy.

It noted that the FRCN issued the Nigerian Code of Corporate Governance (NCCG) 2018 to institutionalize corporate governance best practices in all Companies in Nigeria and repealed all other sectorial codes.

The Commission in exercise of its powers under the National Insurance Commission Act 1997 and in collaboration with FRCN hereby issues its Corporate Governance Guidelines (the Guidelines) to assist the implementation of the NCCG 2018, it said.

It posited that the Guidelines shall be read and interpreted in conjunction with the provision of NCCG 2018 and replaces the NAICOM Code of Good Corporate Governance for the Insurance Industry 2009.

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