Pat Stevens/
In a bold move to crack down on malpractice in Nigeria’s insurance sector, the Economic and Financial Crimes Commission (EFCC) has vowed to take a tougher stance against fraudulent practices within the industry.
The EFCC Chairman, Ola Olukoyede, made this declaration during a courtesy visit by the management of the National Insurance Commission (NICOM) to the commission’s headquarters in Abuja yesterday.
Addressing the NICOM delegation led by Commissioner of Insurance and CEO, Olusegun Ayo Omosehin, Olukoyede condemned the persistent issues of fraud and insolvency in the insurance industry, describing them as a significant hindrance to Nigeria’s economic growth.
“Insurance fraud is a major albatross to our economic development,” he said. “We are ready to take up cases of insolvency caused by fraudulent management. It is no longer business as usual.”
Olukoyede highlighted the troubling trend of insurance companies quickly collecting premiums but evading claims settlements with flimsy excuses.
He noted that the EFCC would collaborate with NICOM to ensure stricter oversight, warning that rogue companies would be held accountable. “We will lend you our teeth so you can bite,” he declared.
The EFCC Chairman announced plans to expand the commission’s Bank Fraud Section to include insurance fraud, signaling a new era of scrutiny for the sector.
“We are looking at the insurance industry just as seriously as we examine the banking sector,” he said, emphasising the need for regulatory compliance to safeguard policyholders and promote industry growth.
NICOM CEO Omosehin echoed these concerns, urging the EFCC to help address corporate governance violations that often lead to the collapse of insurance companies, leaving policyholders stranded.
“Policyholders who have invested their life savings in these institutions are the ones who suffer when fraudsters walk away with the loot,” he said, calling for the EFCC’s intervention to ensure defrauded policyholders receive justice.
The renewed partnership between the EFCC and NICOM is expected to restore confidence in Nigeria’s insurance sector, signaling a warning to fraudulent operators that their days of exploiting policyholders are numbered.
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