Infractions: Underwriters fined N84.2m in three years

For failing to meet regulatory guidelines, some insurance operators have had to cough up an estimated N84.2 billion as fines in the last three years. The amount represents part of what was paid to the Exchange and the National Insurance Commission (NAICOM) from 2012 till date. The breakdown revealed that apart from the N63 million paid by the affected companies to the two regulatory bodies between 2012 and 2014, five underwriters that have failed to forward their 2013 account details to the commission would be made to pay a minimum of N21 million as fines.

This is coming just as 18 insurers met the NSE deadline for 2014 audited accounts with March 31, 2015 as deadline. According to the details released by NAICOM, Alliance & General insurance; Alliance & General Life Assurance; NICON Insurance Limited; Spring Life Assurance and Unic Insurance Plc failed to forward their 2013 account details to the commission before the annual deadline of June 30. Prior to the latest fine, the commission raked in N3.2 million from the 28 insurers that failed to meet the deadline in the recent past following the N5,000 per day fine after the deadline. While the penalty by NAICOM stands at N5,000 per day, the insurers are made to pay fines running into millions for similar infractions to the NSE.

For the 2012 infractions, about 21 listed insurance companies also paid a total of N60 million to the Exchange for late submission of their financial accounts. The X-Compliant Report of the NSE revealed that the affected companies filed in their financial statements to the Exchange after the regulatory due date, which warrants such fines. Leading the pack was Universal Insurance Plc, which had to cough out N4.2 million, while African Alliance Insurance Plc equally paid N4 million penalty. Guinea Insurance Plc forfeited N3.8 million fines. The Exchange had to fine both Equity Assurance Plc and Niger Insurance Plc N3.2 million each, while Great Nigerian Insurance Plc was equally fined N3.8 million. Lasaco Assurance Plc also paid N3.6 million penalty to the Exchange. NEM Insurance Plc, on the other hand, got N3.5 million sanction, while Mutual Benefit Assurance Plc paid N3.4 million sanction. Prestige Assurance paid N2.9 million, Law Union and Rock Insurance Plc paid N2.7 million fine, while Regency Alliance Insurance Plc got penalised for N2.5 million. Sovereign Trust Insurance (STI) Plc paid N2.4 million, Cornerstone Insurance Plc paid N2.8 million for the same offence, while Royal Exchange Plc got N2.6 million fine.

Also, Unity Kapital Insurance Plc coughed out N2.1 million as fine, Custodian & Allied Insurance Plc paid N2.2 million monetary sanction, while AIICO Insurance Plc got sanctioned for N1.5 million. Consolidated Hallmark Insurance Plc had to pay N900,000 as penalty, while Wapic Insurance Plc was fined N700,000. Meanwhile, the 18 insurers that met the March 31, 2015 NSE deadline include AIICO Insurance Plc, Consolidated Hallmark Insurance Plc, Continental Reinsurance Plc, Cornerstone Insurance Plc, Custodian and Allied Insurance Plc and Equity Assurance Plc. Others are Intercontinental Wapic Insurance Plc, Law Union, Rocl insurance Plc and Lasaco Assurance Plc.