We’Ve Reduced Non-Settlement Of Insurance Claims To Barest Minimum—NAICOM

The National Insurance Commission said it has reduced the issue of non-settlement of claims by Insurance firms to the barest minimum.

This is just as the Commission said it will begin to rank insurance companies based on the number of claims received and settled annually.

The Commissioner for Insurance, Sunday Thomas, said these in his keynote address which was delivered at the NAICOM 2022 retreat for finance journalists with theme, “Improving insurance access through market development and innovation in 2022 and beyond.”

The insurance industry paid the sum of N238.05bn as insurance claims in the 2021 fiscal period.

Thomas said the Commission has been implementing various market developmental initiatives to lift the insurance sector to a global standard.

He listed some of the initiatives to include Risk Based Supervision Framework, encouragement of investment in digital capabilities and automation, enforcement of the compulsory insurance products in Nigeria via partnership with agencies and states,
capacity development programmes, introduction of regulatory reforms and policies such as issuance of web aggregators’ guidelines.

The NAICOM Boss explained that the Nigerian insurance market has undergone substantial structural and regulatory reforms over the years following the market development initiatives being implemented and the evolution of Nigeria’s financial sector in the last decade which has been characterized by digital transformation.

He 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 activities of few amongst the operators is jeopardising the efforts of the majority.

“We had before now agreed to start ranking companies on the number of claims received and settled on annual basis and we intend to publish such ranking for the insurance consumers. It is always an issue that put 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.”

He also disclosed that the commission is deploying technology to boost access to insurance.

He said “We are exploring ways to take insurance to where the other financial sectors are or even surpass that mark. Financial transactions are more of a one-stop shop for everything and is either we key in or we lose the business to more innovative outlets that will seize it from us.”

The NAICOM Boss added that the commission is building a nationwide penetration structure that will open up insurance market across the country’s six geo-political zones.

“Our efforts in the development of the market is an all inclusive one from the creation of avenues to deepen insurance penetration to increasing access to insurance products via digital platforms and increasing visibility of insurance across the nooks and crannies of the country.

“The Commission recently partnered with Financial Sector Deepening Africa, FSD Africa to launch the Bimalab Nigeria, a program aimed at accelerating the insurtech innovation.

“Let me inform you that the Commission will soon be unveiling the Commission’s sandbox to give room for innovative expansion of insurance reach out.

“The web aggregators’ guideline is also aimed at opening access to insurance and also a means of creating a convenient market for insurance,” he added.