THERE are indications that the National Insurance Commission (NAICOM) may compel insurance companies with subsidiaries beyond the shore of Nigeria to subject their subsidiaries company to regulations of the commission.

This may commence as soon as the industry migrates to comply with the Federal Government directive on International Financial Reporting Standard (IFRS) to operate a consolidated account with their foreign subsidiaries.

Mr Fola Daniel, Commissioner for Insurance, who disclosed this at a meeting with journalists, noted that the action became necessary because many companies operating foreign subsidiaries were chasing shadows, adding that many of such companies did not have insurable interest before going abroad to open offshore subsidiaries.

Welcoming this initiative, Mr. Yemi Soladoye, an industry expert and consultant to NAICOM on the implementation of Market Development Restructuring Initiatives (MDRI) opined that it was a regulation that was well over due.

He noted that the capital base funds of insurance companies were not meant to be bank deposit or to develop Ghana market, stressing that charity began at home.

According to him, local market still needs to be developed in areas of capacity, efficiency and safety, explaining that capacity ensures that the sector is financially sound; “efficiency entails creating a performing market structure; while safety will induce consumer trust in the market”,he said.

Also reacting, Mr Babajide Agbeja, Managing Director of Boff and Company Insurance Brokers stated that for every  insurance outfit opened outside the country, four new branches must have been opened in Nigeria.

While cautioning that necessary research must be carried out before crossing the borders and not just in a bid to toe the line of the banks, Agbeja posited that charity must start from home.

Mr Val Ojumah, Managing Director of FBN Life Limited maintained that the concept of going abroad to open branches was not entirely a bad one, to stressing that there was need to develop the home front adequately.

In his words: “The focus should be to cover the whole of Nigeria very well,as such companies should stop jumping out just to catch up with the Jones’s.”

He stated that underwriters should focus on opening branches in Nigeria while not closing their eyes to opportunities adorning the West African coast or anywhere else in Africa, adding “Insurers should concentrate a lot more on creating new products locally as well as expanding network within Nigeria.