The 10-year tenure limit imposed on insurance companies by the National Insurance Commission (NAICOM) is beginning to spark an overhaul of the leadership of the sector, following the commencement of the policy implementation from January 1, 2024.
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Checks reveal that about 15 managing directors/CEOs and executive directors of 10 insurance companies have so far left their positions and their firms since the beginning of this year, and more will still follow.
The affected professionals have since vacated their position as the National Insurance Commission(NAICOM) commenced implementation of the 10-year tenure limit in insurance companies in the country.
To this end, the MDs and EDs who have overstayed the 10-year period have left their managerial positions in the companies they represent with new ones taking over.
While some of the companies have had their MDs and EDs approved by the insurance industry regulatory body, NAICOM, others were still awaiting approval, hence, were in acting capacity for the meantime.
NAICOM had, in a circular number: NAICOM/DPR/CIR/45/2022, to all insurers and reinsurers on Tuesday, 22nd of November,2022, said, this development would become effective from 1st of January, 2023 with a grace of 12- month transition period.
By this development, the affected managers have exited their companies as at 31st of December 2023 as their successors took over officially starting from 1st of January, 2024, even though it’s a public holiday.
The affected companies include; Leadway Assurance, Consolidated Hallmark Insurance, NEM Insurance, GNI, Sterling Assurance, Capital Express Assurance, among others.
In Leadway Assurance Company Limited, Mr. Tunde Hassan-Odukale and Ms. Adetola Adegbayi, who were both MD/CEO and executive director, Technical, have left their position which were now taken over by Mr. Gboyega Lesi and Mrs. Oluwafunmilayo Amanwa respectively.
Similarly, Mr. Eddie Efekoha has left his position as the MD/CEO, of Consolidated Hallmark Insurance to take up the group CEO position at Consolidated Hallmark Holdings(CHH) Plc in a Holding structure that the company now operates, thereby, allowing Mary Adeyanju assumes the position of the MD/CEO of Consolidated Hallmark Insurance Limited having been elevated from her former position as ED, Operations, a position that Mr. Jimalex Orjiako now occupies.
At Capital Express Assurance Limited! Mr. Mathew Ogwezhi has now assumed the position of acting managing director/CEO, following the exit of former MD/CEO, Mrs. Bola Odukale. Similarly, Mr. Gbenga Owodunni assumed the position of acting deputy managing director/COO) after the former left due to the tenure policy, , even as the duo are undergoing approval processing by the National Insurance Commission(NAICOM).
For NEM Insurance Plc, Mr. Andrew Ikekhua has taken over the position of the managing director/CEO, NEM Insurance Plc from Tope Smart who has now assumed the position of the chairman of the insurance firm as this appointments have been approved by NAICOM.
Meanwhile, Mrs. Cecilia Osipitan, it was learnt, has vacated his position as the managing director/CEO of Great Nigeria Insurance(GNI) for a new MD/CEO, but this appointment is awaiting regulatory approval.
Sterling Assurance, it was learnt, is also awaiting regulatory approval of its new MD/CEO after the former boss, Dr. Fatai Kayode Lawal has since left his position.
Earlier in the year, Mr. Ganiyu. Musa who was the group managing director/CEO of Cornerstone Insurance Plc, has vacated his post having spent over 10 years in his position as well as attained retirement age in the organisation. Mr. Stephen Alangbo has since taken over his position.
Aside from the listed ones, there are indications that about eight more companies have their EDs affected and have appointed successors, whose regulatory approvals were still in waiting.
NAICOM, who said, it is exercising its powers under the National Insurance Commission(NAICOM) Act 1997 and in line with the Nigerian code of Corporate Governance 2018, said, the maximum tenure for executive directors of insurance and reinsurance companies operating in Nigeria, is needed to sanitise the industry and ensure the sector continues to operate with international best practices.
According to NAICOM, “CEOs and other EDs shall serve a maximum tenure of 10 years, comprising of terms of five years each, subject to single approval of the commission; the tenure for an ED who becomes a CEO in the same company shall serve a cumulative tenure not exceeding 15 years and where an ED changes portfolio by moving to another position of ED equivalent within the same company, the period spent in previous position will count for the purpose of determining maximum tenures.”
The circular, signed by the director, Policy and Regulation, L.M Abah, for commissioner of insurance, Mr Sunday Thomas, added that, where an insurance company is a product of merger, acquisition, takeover or any other combination, the 10-year period shall include the pre and post combination service years as CEO or as ED.
Reacting to this development at the weekend, the group chief executive officer(GCEO) of Consolidated Hallmark Holdings(CHH) Plc, Mr. Eddie Efekoha, who said he has nothing against the tenure limit, noted that it allows succession plans for the industry, such that there is no vacuum whenever an MD or ED leaves office.
He noted that, his Consolidated Hallmark has been planning its succession plan by becoming a HoldCo with four subsidiaries, long before the regulator came up with the tenure limit policy, disclosing that, the company is always proactive to regulations and operations in a bid to become one of the leading insurers in the country.
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