…As NAICOM plans industry clampdown

The National Insurance Commission (NAICOM) has given a two-week timeline to the Nigerian Insurers Association (NIA) to publish details of outstanding claims in the industry on their website to aid policyholders who wish to claim their settlements.

According to the commission, reports from the insurance companies show that some outstanding claims are not as if the companies are not ready to pay, but that policyholders have not come up with the required documents to conclude the processes.

The mandate and others were the fallout of the insurer’s committee meeting, held at the weekend in Lagos.

According to the Head of Corporate Communications and Market Development, NAICOM, Rasaaq Salami, the ultimatum is aimed at making insurance subscribers claim their settlements.

Salami said the two-week timeline given to NIA to execute the publication would be followed by a three-month monitoring period to assess improvements in the industry.

He said if progress is lacking after three months, regulatory action might be taken.

The Commissioner for Insurance, Sunday Thomas, while addressing the issue of claims at an earlier forum said: “Claims payment has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though the activities of a few among the operators are jeopardizing the efforts of the majority.

“We had, before now, agreed to start ranking companies on the number of claims received and settled every year and we intend to publish such ranking for the insurance consumers. It is always an issue that puts the entire industry on the edge. The commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector,”

The Chairman of the Publicity Sub-Committee of the Insurers Committee, Ebelechukwu Nwachukwu, who also spoke on the issue of continuous improvement in risk-based supervision (RBS) for the growth of the industry and the implementation of risk-based pricing, said that the committee’s transformation roadmap includes proposals for increased awareness, enhanced market conduct, insurer partnerships with telecommunications and non-insurance channels, digitalisation improvement and deepening of the talents.

Nwachukwu said NAICOM has indicated that the kick-off date for RBC may not extend beyond 2024. (The Guardian)

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