Corporate Governance: NAICOM Considers Tenure for All Directors
Pending the final release of the corporate governance code for the Nigerian Insurance sub-sector, National Insurance Commission (NAICOM) may tinker with the tenure and re-election of Directors in all insurance companies in Nigeria.
Commissioner for Insurance, Mr. Mohammed Kari disclosed this in his paper titled: “The Nigerian Insurance Industry and Corporate Governance” presented at the breakfast meeting organized by the Society for Corporate Governance Nigeria held in Lagos, Southwest Nigeria.
The NAICOM boss said, “currently it is only Non-Independent Directors that are tenured, but going forward, tenure will be introduced for all Directors”.
According to Kari, Conflict of Interest is another of the few measures the Commission may be considering towards ensuring effective and efficient corporate governance for the sector.
“One of the cardinal objectives of the Corporate Governance is to ensure that appropriate measures and procedures are in place to effectively manage conflict of interest regarding the Members of the Board and Management/Other Staff”, he said.
“Whilst there is a conflict of interest provisions in the current Code, the provisions are not far reaching enough to address the peculiarities of the Nigerian business environment particularly in the insurance industry as recent shocking incidents have revealed.
He noted that the Commission is considering very potent provisions aimed at checking the recurring scandalous unethical practices arising from conflicting interest.
Other measures on the sleeves of the insurance regulator include but not limited to Continuous training for Directors, Annual Assessment of Directors, Selection & Role of Independent Directors, Code of Business Conduct and Ethics, Specific policy on Protection of Policyholder’s interest, Company Investors’ Portal, Independence of Management and Board of Directors, among others.
The NAICOM boss argued that there is no substitute to Good Corporate Governance on the survival of any Insurance Institution, stressing that it is sine qua non for the continuous successful existence for all insurers.
Kari however added that “as times change, the Commission will continue to review the Code to adapt with changing business and practices”.
He further noted that the Commission will welcome the support and collaboration of all stakeholders in the Insurance sub-sector including the Society for Corporate Governance Nigeria towards ensuring that strong and efficient good corporate governance is enthroned in the management and administration of insurance institutions in Nigeria.