“The commission assures all stakeholders of the safety and protection of their interests.”

It would be recalled that in June 2021, the Nigerian Insurers Association suspended Industrial and General Insurance Company Limited, Niger Insurance and Standard Alliance Insurance.

“The governing council of the Nigerian Insurers Association approved the expulsion of the following companies from its membership for failing to meet their obligations to policyholders thus negating the basic principles of insurance,” the NIA had said.

It added that the affected companies should cease forthwith from using the association’s logo on their letterheads and other official documents.

A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said inflation in the country was making it difficult for some insurance companies to meet up with their claims obligations.

According to him, the operating environment is challenging and only the strong ones that could work very hard could stand.

He said, “Many companies cannot stand now, a lot of people are not doing insurance because they don’t even have money to eat. The insurance industry is not attracting people the way it should, it is not that people don’t know the relevance of insurance.”

The CEO of an insurance company, who chose to speak on condition of anonymity, said the two companies were among the extremely sick insurance companies and NAICOM had been managing them for a long time.

“But there is a point the regulator must be able to stand its feet and I think NAICOM has come to that point, not only those two but there are others,” he said.

“On the side of shareholders, especially minority shareholders, it is a great loss because once the licence is revoked, that means the business has collapsed,” he said.

He added, “NAICOM will still settle the liabilities of depositors, the insured or other related parties who have transactions with the company; these include banks and suppliers. They will find a way of realising the assets and settling them, but the only persons that go home without anything at the end of the day are the shareholders.

“So, shareholders have the duty of ensuring that they put the management team members on their toes because when it comes to final issue like this, they bear the brunt.”