A director disqualified by the nine years rule as stated in the code of corporate governance, may be reappointed to the same board after a cooling period of three years, the Commissioner for Insurance, Mohammed Kari, has said.
Kari, disclosed this in Abeokuta, recently during Insurance Professionals’ Forum, said that the 40 per cent maximum stipulated for executive management in the board structure of the code must include, at least one executive director, to be responsible for technical operational matters and that the executive director shall have the qualification required in the law of that of the chief executive officer.
“On meeting of that requirement, companies may have other executive directors they wish up to the limit of the 40 percent,” he added.
In the same vein, the Commissioner for Insurance urged operators to allow professionals from other fields on their management boards to enhance performance.
He explained that such would allow cross breed of ideas.
He noted that the banking sector is thriving because professionals from different disciplines consist the management team.
He noted that it is time for the insurance industry to move to the next level, stressing that the industry cannot make much progress unless the operators rethink their strategies.
Daily Times recalls that the Commissioner for Insurance, Mohammed Kari, early in year had assured operators that the Commission is working to make insurance institutions richer and better, but wondered why they are not taking advantage of the opportunities created by the commission.
Kari, said among other opportunities created to enrich the operators was the Market Development and Restructuring Initiatives (MDRI) programme, stressing that the initiative was designed by the Commission with focus on the Enforcement of compulsory insurance products, Increase insurance awareness, Reduction in incidences of fake insures/insurances and Increase agency reform.
He said: “In 2009, the Commission launched the Market Development and Restructuring Initiatives (MDRI) programme. This is a medium term industry development plan designed by the Commission with focus on the Enforcement of compulsory insurance products, Increase insurance awareness, Reduction in incidences of fake insures/insurances and Increase agency reform.
“This initiative was successfully launched in the six geo-political zones and Abuja. The Commission also followed up with massive awareness campaign, road-shows and seminars again in all the zones of the country. These efforts were geared towards making the insurance institutions richer and better.
“The question remains whether the insurance companies have been able to take maximum advantage of this window to grow their businesses,” he said.
He posited that to forestall the insistent poor cash flow position of most insurance operators and the attendant inability to settle claims and other operational liabilities, the Commission embarked on the full implementation of the No Premium No Cover as enshrined in the Insurance Act 2003 at the beginning of 2013, stressing that the initiative has significantly increased the cash flow of the insurance industry thus, enhancing its ability to settle genuine claims and other operational liabilities including, payment of dividends to shareholders.
“The Commission has also recently embarked on the sensitization of Ministries, Departments and Agencies (MDAs) of government on the compelling need for adequate insurance of their assets.
“We have equally canvassed the engagement of insurance professionals to handle their insurances to ensure they procure proper insurance policies. We have advocated the need for the MDAs to ensure adequate budgets for the insurance of their assets as well. We have entered into collaboration with relevant government agencies to enforce compliance of certain classes of insurance made compulsory by extant laws in the country,” he said.
Kari, however, mentioned that the commission believes that these drives are capable of providing the much-required boost in the growth of the industry.