Nigerian govt to begin classification of insurance firms

The Federal Government said it was ready to introduce a new classification policy into the insurance industry.

The policy, which would be implemented through the National Insurance Commission (NAICOM), would ensure insurance firms are classified on a risk-based system, where they will be restricted to specific areas where they can best perform.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Muhammad Kari, made this known while speaking at an executive breakfast meeting organized by the society for Corporate Governance Nigeria, on Wednesday in Lagos.

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Kari, while delivering a lecture titled, ‘Corporate governance and the Nigerian insurance industry’, said under the planned risk-based system, insurance companies would be restricted to operate only within their areas of core competences and capital assets.

“We are used to classifying companies with their capital but we are working on the process of introducing risk-based classification, which will try to see what assets or capital can cover,” he added.

 

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