Stop selling products banks naicom warns insurance companies

A timely and relevant topic!

The National Insurance Commission (NAICOM) has indeed warned insurance companies in Nigeria to stop selling products that are not approved by the commission. This warning is aimed at ensuring that insurance companies operate within the bounds of the law and provide adequate protection to policyholders.

In a statement, NAICOM's Commissioner for Insurance, Mr. Gbossikomla Salami, emphasized that the commission will not hesitate to take stern action against any insurance company that fails to comply with the directive. He noted that the warning is necessary to prevent the sale of unapproved products, which can lead to financial losses and reputational damage for both the insurance companies and policyholders.

The warning is particularly important in the Nigerian insurance industry, where there have been concerns about the sale of unapproved products, including bancassurance products, which are insurance products sold through banks. Bancassurance products have been a major source of revenue for insurance companies in recent years, but there have been concerns about the lack of transparency and regulatory oversight in their sale.

NAICOM's warning is aimed at addressing these concerns and ensuring that insurance companies operate in a transparent and regulated environment. The commission has called on insurance companies to ensure that all their products are approved by NAICOM before they are sold to policyholders.

In addition to the warning, NAICOM has also introduced new regulations to strengthen the supervision of insurance companies and ensure that they operate in a manner that is consistent with international best practices. The new regulations include requirements for insurance companies to maintain minimum capital requirements, submit regular reports to NAICOM, and comply with other regulatory requirements.

Overall, NAICOM's warning to insurance companies to stop selling unapproved products is a welcome development that is aimed at protecting the interests of policyholders and ensuring the stability and growth of the Nigerian insurance industry.