The National Insurance Commission (NAICOM), the primary regulatory authority for the Nigerian insurance sector, has mandated the Board of African Alliance Insurance Plc to address and settle all outstanding claims from their customers.
This directive was issued in Abuja on Friday by NAICOM’s management.
The commission stated that this decision was prompted by a significant rise in complaints from annuitants and insurance claimants against the company.
Turnaround plan
NAICOM said it also directed the board of directors of the company to immediately submit a turnaround plan for addressing the challenges currently faced by the company.
The commission said it would take further regulatory actions against the company if it failed to resolve the challenges within the stipulated grace period given them.
The commission said it had put the company under its Regulatory Order (RO).
” Following increased complaints by annuitants and insurance claimants against African Alliance Insurance Plc in respect of the company’s delay and/or inability to fulfil its obligations, NAICOM has given marching orders to the company.
” The order is for the company to resolve and ensure settlement of outstanding claims.
” Given the heightened challenges, the company should expect further actions if they fail to address the issues within the timeline the company has been given,” it said.
NAICOM reassured stakeholders in the sector of its commitment to ensure fair treatment for all, and enforce professionalism and good conduct among its licensed operators.
Failure to file their audited financial statements
Nairametrics reported recently that the Nigerian Exchange Limited (NGX) fined African Alliance Insurance Plc and eight other quoted companies N76.8 million for failure to file their audited financial statements after the regulatory due date.
An investigation by Nairametrics showed that the companies were sanctioned for their inability to meet the regulatory requirements for the year-end 2022 and 2023 financials.
The companies include African Alliance Insurance Plc, VFD Group Plc, FBN Holdings Plc, Sterling Financial Holdings Company Plc, UPDC Plc, ABC Transport Plc, Presco Plc, eTranzact International Plc, and NCR (Nigeria) Plc.
Further checks showed African Alliance Insurance Plc with N48.6 million fine for inability to file the 2022 annual financial statement when required.
Others that failed to submit their 2023 annual financials include VFD Group Plc, N5.6 million, FBN Holdings Plc N5.4 million, Sterling Financial Holdings Company Plc, N6 million, UPDC Plc, 3.9 million, ABC Transport Plc, N3.2 million, Presco Plc, N3.2 million, eTranzact International Plc, N700,000.00, and NCR (Nigeria) Plc with N200,000.00 fine accounting for a cumulative fine of N76.8 million.