Recently, investors in insurance industry blasted finance sector regulators over the punitive fines imposed on operating firms in the industry for various offences especially failure to meet deadline for submission of annual accounts and financial reports.
The investors also frowned on what they described as the huge sum deposited at the Central Bank of Nigeria (CBN) as statutory deposit by insurance firms. They urged the umbrella body of insurance underwriters, the Nigeria Insurers Association (NIA) to take the matter up to the National Assembly.
Speaking at the 23rd annual general meeting of Cornerstone Insurance plc held in Lagos, the shareholders described the regulators as “heartless and inconsiderate institutions”, insisting that they should return the money to the individual firms they collected it from. The Cornerstone shareholders said it was painful to them to see record of N128million fine paid by the company to the National Insurance Commission(NAICOM) and other related regulators because of various offences recorded against them.
According to Akinsonya Solomon, one of the shareholders who spoke on the issue, incessant fines heaped on operating firms by the regulators are becoming unbearable observing that virtually all insurance firms in Nigeria have been fined for one offence or the other this year.
He said it is unbecoming of the Financial Reporting Council to be putting in place regulations that keep operating firms in the system very uncomfortable.