By Tony Obiechina Abuja
The National Insurance Commission (NAICOM) on has released new operational guidelines as part of its strategic objective to drive innovation of products and services in the Insurance industry.
In a statement by NAICOM’s Head of Corporate Communication and Market Development, Alhaji Rasaaq ‘Salami, on behalf of the Commissioner for Insurance, Mr Sunday Thomas, on Friday, the Guidelines are to ensure that operators are professional in the conduct of their businesses in line with best practices.
Areas to be targeted by the Guidelines are:
•Insurance Regulatory Sandbox Operational Guidelines;
•Market Conduct Guidelines for Takaful and Retakaful Insurance Operators;
•Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.
“The Commission expects all Operators to ensure compliance with the new guidelines to the benefit of all stakeholders. Attached are the various guidelines for your necessary action”, the statement added.
The objectives of the Guidelines include, to provide insurance institutions, other firms and persons the opportunity to test business models, products and services that will enhance efficiency in meeting consumers’ needs; to encourage innovation that will drive financial inclusion and positive competition; to promote and deliver economic benefits, by lowering the cost of business operations.
The main objectives of the Market Conduct Guidelines for Takaful and Retakaful Insurance Operators are:
* to set out minimum standards required from Takaful Insurance Operators in their
dealings with Participants/Policyholders, Shareholders and other Stakeholders;
*to promote greater fairness and transparency between Participants/Policyholders and
Takaful Insurance Operators;
*To Establish strong Market Conduct and Business Practice amongst the
Practitioners/Stakeholders and enhance mutual confidence for Market efficiency;
*To set out the general licensing and authorization requirements for Takaful Insurance Operators and Intermediaries.
*To State the responsibility of Takaful Insurance Operators in ensuring that their activities are properly coordinated and carried out in a professional manner;
*To Provide principles to ensure that customers are treated fairly, prior to the inception and discharge of the contract;
*Provide the Board of Directors and Management of Takaful Insurance Operators with a framework for the establishment of policies and procedures for effective Takaful operations.
