The National Insurance Commission (NAICOM) has said that it is set deal with insurance companies, its CEO and brokers that will use the Tier-Based classification as a de- marketing tool against an insurers.

The commission was making the move to ensure sanity in the market as it implements the Tier-Based Minimum Solvency Capital (TBMSC) policy.

The Director, Supervision, NAICOM, Barineka Thompson who stated this pointed out that all insurers that are certified to operate in a specified Risk Class by the Commission shall be viewed and treated by insurance institutions and the insuring public as having the same and equal opportunity, rights, obligations and qualifying financial capacity as any other insurer in the same risk class, until an insurer is declared otherwise.

According to Thompson, in any case of violation it will sanction Chief Executive Officers and other relevant Officer(s) of the insurance institution, and/or Suspension of operational license for a period of six months, and where the violation persists, the withdrawal of the operating license of the insurance institution, as the Commission may determine.

He however urged operators to report all forms of market abuse involving the operation of the Tier-Based policy to the Commission, immediately on the occurrence of a violation by an insurance institution.

Giving condition for TBMSC, the commission stated; “Publication of Insurers‚Äô Tier Level: The Commission shall have the sole responsibility to publish the list of insurers and their qualified Tier levels, before the commencement of this policy and from time to time, subsequently.

Similarly, “All insurers that are certified to operate in a specified Risk Class by the Commission shall be viewed and treated by insurance institutions and the insuring public as having the same and equal opportunity, rights, obligations and qualifying financial capacity as any other insurer in the same risk class, until an insurer is declared otherwise.

“The Tier-Based policy or any inference thereof shall not be used by an insurance institution in any form of public advertisement, commentary, presentation and/or communication whatsoever, without the prior approval of the Commission”, among others conditions