NAICOM To Sanction Insurance Companies With Huge Unsettled Claims

The National Insurance Commission has announced its commencement of profiling of companies with huge unsettled claims for necessary regulatory action.

Speaking at the opening session of the 2020 Insurance Directors’ conference, Commissioner for Insurance, Sunday Thomas said that the era of huge backlog of claims should no longer be associated with insurance firms.

He said, “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.

“Operators in the industry must strengthen their human and financial capital for effective participation in big ticket risks.”

At the conference themed: “Insurance Industry Post Pandemic: The Pursuit for Survival and Growth”, the Commissioner said that focus must shift to service delivery.

This, he stated, would make the companies seek reasons to settle client’s claims and less reasons for repudiation of claims.

He further urged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks.

“It has been observed that the gains of domesticating policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually loosing its meaning for the insurance sector.

“More businesses especially in the oil and gas and the aviation sectors are now been re insured abroad,” he added.

Speaking on the decline in the annuity business, he said, “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.

“The Industry must invest handsomely in technology, one of our 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.”

He said the need to invest massively in awareness campaign about insurance cannot be over emphasised as there seems to be a consensus that public perception of insurance still remains very low largely due to lack of awareness by the public.

The Commissioner noted that among other issues that has continued to hurt insurance business in the country is the total lack of understanding of the business of insurance and the benefits that are offered, adding that the strategy must change.

He added, “The recent crises associated with #EndSARS protest which led to the destruction of lives and properties is indeed an eye opener and an opportunity for companies to engage in massive awareness programs on relevant insurance cover for lives and properties of individuals and all businesses.”