Investors in the insurance industry have urged the regulatory authority, the National Insurance Commission (NAICOM) to ensure proper regulation of the industry through objective screening of the operators books of account just as the Central Bank of Nigeria (CBN) did in the banking industry.

The investors under the aegis of Shareholders Solidarity Association of Nigeria said most problems of businesses operating in the country are caused by the regulatory authorities of various industries.

The investors speaking through Mr. Timothy Adesina, said the regulators cause the problems by certifying that all is well for the companies they regulate while in the actual sense, there are multiples of problems surrounding the companies.

They cited instance of the ailing nine banks screened by the CBN late last year and said had the apex bank not read between the lines in supervising their books investors and depositors of the banks would have been weeping by now adding that their state of health before the CBN removed their directors if allowed till date would have made them go down by now.

They, therefore, called on NAICOM to toe the line of CBN governor and save investors’ fund in the custody of insurance firms adding that this will go a long way to build the confidence of both the insuring public and investors in the industry.

But the commissioners, for insurance, Mr Fola Daniel, had earlier in an interview with newsmen said he would not repeat what the CBN governor did in the banking sector in insurance industry. He said this is because of the peculiar nature of insurance business.

Mr Daniel said rather than doing what the CBN did, he would open up windows of opportunities to be keyed in by insurance managers to expand their profit.

He also said the commission has concluded plans to introduce the Market Development and Restructuring Initiative (MDRI) which focuses on two major issues developing the market through enforcement of compulsory insurance and restructuring of the system through a review of the channels of distribution and elimination of fake insurance.

The MDRI initiative has been presented to the industry operators by the commission as a way of carrying them along. Through this initiative, NAICOM said it would ensure the enforcement of all the 13 compulsory insurance policies stipulated by the insurance act of 2003.

He said in redefining and restructuring the insurance market, the commissions should not be expected to copy the Central Bank of Nigeria in dealing with the operators.

According to him, “I know there are some people who love to celebrate the pains of others and would want NAICOM to visit the industry with the same treatment with which the CBN visited the banks recently fair or foul. They however, forget to note that the two industries are not exactly the same apart from that there are several ways of treating the same ailment and it will not be nice to mimic CBN action” the insurance commissioner stated.