Inappropriate legislation plaguing industry- NAICOM

Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), Mohammed Kari has blamed inappropriate pieces of laws which often brew disharmony among industry regulatory agencies to dilemma faced by the insurance sector.
Kari insists that if the insurance industry must grow, it requires those laws that conform to modern practice and laws that takes into account the potential role or impact of insurance on policyholders, insurers, regulators and government, stressing that as the society faces huge challenges, the role of insurance becomes ever more vital.
Speaking at the second National Conference on Insurance and Pension, organised by the National Association of Insurance and Pension Correspondents (NAIPCO), in Lagos, the commissioner said, “Suffice it to say that our experience with insurance legislations in Nigeria could best be described as sweet and sour.
The insurance industry has fallen victim to legislations over the years and the scars have remained very visible to date. In recent years, we have had legislations in Nigeria which have inadvertently inhibited the growth of insurance and its contribution to the nation’s Gross Domestic Products”.
Giving instances, kari who was represented by Pius Agboola Director Authorisation and Policy in the agency recalled, “Only a few years back, the workmen compensation which is a product of the insurance industry anywhere in the world was severed by a legislation, notwithstanding the resistance and position of insurance operators to the new legislation. The conflict of interest created by that legislation still lives with us. Of course, we are aware of the legislation that equally severed pension from insurance”.
Continuing, he said, “In spite of the good working relationship that exist between us and our pear regulators – PenCom, CBN, SEC, NCC, etc, there exist conflicts created by legislations in certain areas where interpretations of sections of the law is viewed differently. In the implementation of these legislations, regulators whose duty is to implement the provisions of the law are wont to rely on their respective interpretations which often creates conflicts and lead to impasse between regulators.
I must say here that NAICOM has had its own fair share of this organised confusion in the past and recently with the PenCom over the issue of Custodians for annuity funds where the two Agencies have both relied on their respective interpretations of the same legislation.
The sad truth is that while the regulators bicker over whose interpretation of the law is superior, the consumers of these products and the operators suffer. In the process, lives, income and businesses may be lost. No thanks to certain legislations that overlap and seemingly look ambiguous and almost impracticable,”.
He observed however that it is perhaps for situations like this that the Financial Services Sector deemed it imperative to establish the Financial Services Regulatory Consultative Council (FSRCC) to mediate between Agencies with these sort of conflicts.