BY NKECHI NAECHE- ESEZOBOR–The National Insurance Commission, (NAICOM), has urged directors in insurance firms to stick to principles of Governance, Risk, and Compliance (GRC) for improved corporate governance and sustainability.
Speaking at the 2024 Insurance Directors’ conference organised by College Of Insurance and Financial Management, ( CIFM), held recently in Lagos, Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said that integrating GRC at the board level is vital for business success and sustainability.
He also noted that adopting GRC frameworks is no longer optional, but an essential ingredient for enhancing decisionmaking, transparency, accountability and risk management.
He listed subpar corporate governance practices, poor risk management and a very low compliance culture.as some of the key challenges facing the industry.
According to him to overcome these challenges, the Board as the highest policy
making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and
Compliance principles. If carefully implemented this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.
In her remarks, President of Chartered Insurance Institute of Nigeria, (CIIN), Mrs. Yetunde Ilori said “today we are looking at governance, our risk assessment and risk at compliance level with the legal and regulatory guidelines that we have.
“There is nothing like self regulation. We need to look at all that we claimed to stand for as an industry where confidence and trust of the public should be more dear to our heart.
“As board members we need to begin to hold ourselves responsible. We need to begin to ask ourselves, what kind of industry do we want insurance industry to be.?
What are the things we are not doing right. Our governance level is it where it should be.?
She added that “Professionalism should be key to us at every level and setting the tone should come from the board. I know we have been doing some great things at board level.
” Let’s begin to hold the management accountable to our focus and our goals. Let’s begin to make our operations transparent enough to win the confidence and trust of the public .
“We need to be the pillar and provide the necessary support for our economy to do well.”
Also, Prof Chris Ogbechie, Dean Lagos Business School, while presenting his paper titled “Board strategic Leadership & Principles Performance”, urged directors to spend less time looking in the rear-view mirror and more time scanning the road ahead.
He noted that spending more time on matters crucial to the future prosperity and direction of the business and less time on quarterly reports, audit reviews, budgets, etc will go a long way to impact the policyholders.
His of the opinion that directors should drive strategic thinking by closely monitor how competitors are evolving and where they are investing.
He said directors can encourage management to think towards long-term investment or strategy that can help grow its bottom and topline
He also urged them to drive innovation in the organization and ensure they achieve flawless execution.
“Ensure that a robust performance management system is in place. Defining key performance indicators (KPIs) and metrics to monitor and evaluate the organization’s progress.”
