- Post by Admin on sunday, March 05, 2015
There is an urgent need for insurance firms in the country to consolidate, the National Insurance Commission (NAICOM) has said. Commissioner for Insurance, Mohammed Kari who spoke while addressing insurance operators at the Nigerian Council of Registered Insurance Brokers (NCRIB) Members Evening in Lagos on Tuesday, said aside from the underwriters, all other insurance operators especially brokers would also need to consolidate.
Kari said the resolution to consolidate was reached and agreed upon by the regulator and operators at the Insurers Retreat held in Abeokuta, Ogun State. He further advised operators who are seeking or may want to seek for a new operating licence to acquire some of the existing weak operators in the industry, adding that consolidation will enable the companies to get enough financial strength.
Kari lamented that only between six and seven companies, out of 27, have paid dividend to their shareholders in the last three years. He said: "For those of you who are interested in the stock exchange, you know that they have removed the bottom. So, the retreat in Abeokuta came to the conclusion that there is need for consolidation. When the roadmap is concluded, we will come out with some directives and policies on how underwriting will be consolidated.
Photo Caption: Commissioner for Insurance, Mohammed Kari