NAICOM Compiles List of Insurance Companies with Unsettled Claims

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NAICOM Compiles List of Insurance Companies with Unsettled Claims

By Ebere Nwoji

The National Insurance Commission (NAICOM) has said it is compiling the list of insurance companies with huge unsettled claims for necessary regulatory action as a way of sanitising the insurance sector and redeeming its image.

The Commissioner for Insurance, Mr. Sunday Thomas, disclosed this yesterday in Lagos at the 2020 insurance directors’ conference organised by NAICOM in Lagos.

Thomas, while addressing board directors of various insurance companies, said the era of huge backlog of claims should no longer be associated with insurance companies in Nigeria.

He also urged companies that are responsive to the plight of their clients in prompt settlement of claims to sustain the tempo, pointing out that this is a good business conduct.

“The era of huge backlog of claims should no longer be associated with our companies, and while the commission is profiling companies with huge unsettled claims for necessary regulatory action, companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct,” he stated.

“To be able to meet their claims obligation at all times and participate in high ticket businesses especially in oil and gas sector, Thomas said operators in the industry must strengthen their human and financial capital for effective participation in big ticket risks.

According to him, “It has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector. More businesses especially in the oil and gas and the aviation sectors are now being reinsured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development.”

He also harped on the need for the insurance industry to invest handsomely in technology, adding that this has remained one of the key drivers for developing the market.

“The institutions should be prepared to digitalise their processes, procedures and systems in order to make their operations seamless and real time. The commission is investing heavily in automating its processes and expects nothing less from the insurance institutions. An industry Information Technology Guideline has been issued for the operators, and the commission requires your support and cooperation for effective compliance,” Thomas stated.

He said the recent crises associated with #EndSARS protest which lead to the destruction of lives and property is indeed an eye opener and an opportunity for companies to engage in massive awareness programmes on relevant insurance cover for lives and property of individuals and all businesses, adding that innovation in the industry will differentiate companies in terms of meeting stakeholders expectation.