The board of two insurance companies, Niger Insurance Plc and Standard Insurance Plc have been informed by insurance regulator, the National Insurance Commission (NAICOM) of its intention to withdraw their certificate of registration.
This is coming in the wake of the inability of both firms to come out of the woods having struggled to operate for some time now with high-level insolvency and liquidity crises.
According to BusinessDay, a high-level industry source said that NAICOM has written both firms between the 29th and 30th of March 2022, informing them of the regulator’s intention to cancel their licence.
The notice according to the source will expire in 30 days.
Before now, both companies have struggled to pay policyholders’ claims, staff salaries and exited staff gratuities with many of the affected clients facing frustrations, particularly with life policies.
They have written petitions to NAICOM, NIA or went to court, but unfortunately, all efforts to rescue the companies through new investors proved abortive
The Nigerian Insurers Association, the umbrella body of the underwriting firms had also applied a self-regulatory measure before now, suspending the companies from its membership list.