The Federal Government, through the National Insurance Commission, plans to introduce a new classification policy in the industry, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Muhammad Kari, has said. Kari stated this at an executive breakfast meeting organised by the Society for Corporate Governance Nigeria, in Lagos on Wednesday.
According to him, under the planned policy, insurance firms will be classified on a risk-based system, where they will be restricted to their areas of competence and abilities. In a lecture entitled, ‘Corporate governance and the Nigerian insurance industry’, Kari said the policy would restrict insurance companies to operate only within their areas of core competences and capital assets.
The commissioner stated, “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.