The National Insurance Commission (NAICOM) says it will engage operators in the insurance industry before taking a definite position on the 10-year tenure for Chief Executives (CE0s) of corporate organisations proposed by the Financial Reporting Council (FRC) under its Code of Corporate Governance model.
Alhaji Mohammed Kari, Commissioner for Insurance, Naicom, said the commission needs time to look through the provisions of the Code released by the FRC as it affects the insurance sector.
If Naicom adopts the provision of the Code on the 10-year tenure model for CE0s, not less than 13 CE0s of insurance firms will vacate their seats.
Already, there is concern in the market that forcing out such large number of CE0s at a time the Commission is moving towards Risk-based Supervision and sending out subtle signals for more capitalisation in the insurance industry will ultimately impact negatively on the sector.
There is also considerable evidence that a committee of insurers are set to meet with the leadership of the FRC to rationalise the key issues in the Code, as well as the contentious tenure matter.