The enforcement of a 10-year tenure limit policy by the National Insurance Commission (NAICOM) has prompted the resignation of at least eight managing directors/CEOs and around ten executive directors within the insurance industry since its implementation on January 1, 2024.
The affected executives have vacated their positions as part of NAICOM’s renewed enforcement of the policy, which has now led to interim leadership changes across multiple firms. Industry sources confirm that the leadership roles at firms such as Leadway Assurance, Consolidated Hallmark Insurance, and NEM Insurance have been affected.
Universal Insurance Plc recently saw the retirement of its managing director/CEO, Ben Ujoatuonu, making him the latest casualty of this policy. An acting managing director has taken over in accordance with the 90-day stipulation outlined in the Tenure Limit policy.
Following inquiries regarding compliance, NAICOM mandated the suspension of Ujoatuonu and designated Dr. Japhet Duru, the Executive Director of Operations, to serve as Acting Managing Director for 90 days. In a letter, NAICOM expressed dissatisfaction with Universal Insurance’s failure to respond to previous directives.
Universal Insurance has since acknowledged oversight in the transition process and expressed its commitment to ensuring suitable replacements are appointed swiftly.
Other notable exits include Tunde Hassan-Odukale and Adetola Adegbayi from Leadway Assurance, as well as Eddie Efekoha from Consolidated Hallmark Insurance, who has moved to a group CEO position at Consolidated Hallmark Holdings (CHH) Plc.
In addition, Matthew Ogwezhi has stepped into the role of managing director/CEO at Capital Express Assurance following Bola Odukale’s departure. For NEM Insurance, Andrew Ikekhua has succeeded Tope Smart, who now serves as chairman.
In a planned restructuring, Cecilia Osipitan vacated her position at Great Nigeria Insurance (GNI) to become group CEO, while Roselyn Ulaeto has been appointed as the acting managing director/CEO.
Sterling Assurance also appointed a new MD/CEO earlier this year, as NAICOM’s crackdown on non-compliant insurers continues. The commission has indicated that stricter actions may be taken against other firms not adhering to the tenure policy.
NAICOM enforces these measures under the National Insurance Commission Act 1997 and in accordance with the Nigerian Code of Corporate Governance 2018. The commission aims to ensure adherence to international best practices and enhance corporate governance within the industry.
According to NAICOM, CEOs and executive directors are allowed a maximum tenure of ten years, with specific provisions for cumulative service periods in different roles within the same company. The current commissioner, Segun Omosehin, has reaffirmed the agency’s commitment to this policy, stating that it is intended to promote effective succession planning and governance within Nigeria’s insurance sector.
