The National Insurance Commission (NAICOM) has begun enforcing its 10-year tenure limit for managing directors and executive directors in the insurance and reinsurance sectors, with Ben Ujoatuonu, CEO of Universal Insurance, becoming the latest executive to be impacted.
Industry sources reveal that Ujoatuonu, now on retirement leave, has been replaced temporarily by the company’s head of technical operations, who will serve as acting managing director for 90 days, as per NAICOM’s directive.
Also read:
South African Reserve Bank (SARB) Sanctions Insurance Firm for Non-Compliance
NAICOM Commissioner Highlights Inflation’s Impact on Insurance Sector at IMT 2024 Conference
Health Insurance Crucial for Nigeria’s Healthcare Survival Amid Economic Challenges, Says Dr. Makinde Akinlemibola
NAICOM had previously queried Universal Insurance for failing to comply with the policy directive and warned of severe sanctions if corrective measures were not taken. In a formal letter, the commission ordered Ujoatuonu’s immediate suspension and gave the company seven working days to provide evidence of compliance. Universal Insurance responded by apologizing for the oversight, attributing the delay to internal challenges, including a disrupted leadership transition.
The commission also mandated the appointment of a new managing director within 90 days. NAICOM’s latest enforcement action signals a strict approach toward ensuring compliance with governance standards across the insurance industry, with other non-compliant companies facing similar scrutiny.
The insurance regulator’s move underscores its determination to uphold governance policies, as it continues to monitor and enforce tenure limits across the sector.
Sources indicate that other insurers are already searching for replacements for executives who have exceeded the 10-year limit, with further regulatory actions anticipated.
