In the insurance industry, this concern is far from unfounded. Over the years, several insurance companies have folded up, leaving policyholders stranded and confidence in the sector shaken.
Currently, one such company is under interim management appointed by the National Insurance Commission (NAICOM), the regulatory authority overseeing Nigeria’s insurance industry.
The latest case is that of African Alliance Insurance Plc (AAI), one of Nigeria’s oldest life assurance providers.
On October 30, 2024, NAICOM exercised its statutory powers by dissolving the company’s Board and Management, following a prolonged period of financial instability and unfulfilled obligations to policyholders and annuitants.
The Commission explained that the decision was taken after an extensive review of the company’s financial condition, governance practices, and operational performance, which revealed deep-rooted weaknesses threatening its ability to operate sustainably.
The Commission therefore appointed Haruna Mustapha as Chairman and Jacob Erhabor as Managing Director/Chief Executive Officer, alongside other executive and non-executive directors, to manage the affairs of the company and restore its financial health.
