NAICOM to re-launch Market Development Restructuring Initiative in 2017

The National Insurance Commission (NAICOM) on Monday, says it would re-launch the Market Development and Restructuring Initiative (MDRI) within the year 2017.

It said also that measures would be taken to ensure customer protection and market stability in 2017.

A circular by the commission, signed by the management and titled, “Statement of NAICOM’s Regulatory Priorities for the Year”, stated this in Abuja.

It stated that special and intensified implementation efforts would be made on Enforcement of Compulsory Insurance, Diversification of Distribution Channels and Increase in Access Points for Insurance Services.

It said attention would be focused on Micro Insurance, Takaful, Improvement in Data Collection and Promotion of Financial Literacy.

On capital verification, it said the commission would undertake a verification of the capital resources of all insurance companies in the first quarter of 2017.

It stated that the measure was to ensure protection of policyholders and beneficiaries of insurance contracts against unexpected losses of insurance companies.

It stated that the commission would pay more detailed attention to reasonableness of management expenses of insurance institutions.

According to the statement, this will ensure that each company’s level of expense was appropriate for its business model and does not adversely affect its profitability, liquidity and capital adequacy.

On statutory returns, it said,” a number of Companies submitted their Statutory Returns for the year 2016 late.

“At the time of issuance of this statements, some are yet to submit the required returns and without explanation.

“This deprives the commission, policyholders, insurance intermediaries, analysts and other stakeholders of the relevant information about the performance and financial condition of the companies, as well as the level of their compliance with relevant provisions of the law.

It said the commission was poised to implement relevant measures to discourage companies from filing late returns and sanction errant ones appropriately.

According to the circular, “there is no doubt that the insurance industry is going to continue to experience its share of the current economic challenges.

It stated that the commission recognised the need to be innovative and proportionate in its supervision of insurance institutions and would be so guided appropriately.

“The commission, however, expects that the avenue provided by Insurers Committee will be fully exploited to progressively improve the insurance industry’s contribution to the real economy in the manner expected by stakeholders,” it further stated.