Matthew Otoijagha
The National Insurance Commission (NAICOM) has suspended Guinea Insurance Plc from doing new businesses, it was gathered yesterday. Sources within the insurance industry said the suspension took effect from January 29 this year.
Going forward and until the suspension is lifted, the firm cannot take new businesses except to maintain the existing businesses in its portfolio. NAICOM, it was gathered, suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.
Reinsurance treaty is a backbone of insurance business. It is an agreement between an assuming and ceding company to cede and assume all risks within a class. This protects companies against large risks and in turn enables their claims payment.
The suspension of the firm is coming when majority of the insurance companies in the industry are doing renewals of insurance businesses. Recall that the commission had last year taken steps to take over the company but was restrained from doing so due to some political maneuverings.