The National Insurance Commission (NAICOM) has challenged insurance companies to provide leadership through quick resolution of disputes in claims.
The Commission is also due to release guidelines for payment of claims emanating from third-party motor insurance policies.
The NAICOM, said in addition insurance companies are now required to cover the costs of every case it resolves.
Mrs Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-committee, said the Commission is set to sanitise the insurance industry, through such measures.
She provided the information at the Insurers’ Committee Meeting held in Lagos on Wednesday.
Nwachukwu, also Managing Director of Rex Insurance Ltd., stated that the regulator noted this decision would help reduce complaints from policyholders, promote accountability among insurance companies.
The NAICOM, according to her expresses concern over the high number of unresolved insurance claims, in spite of efforts to improve settlement processes.
“The NAICOM Commissioner wants insurance companies to engage their brokers and customers to reduce outstanding claims,” she said.
She added that the regulator emphasised compliance with Nigeria’s Data Protection Regulations and urged practitioners to undergo training on data protection.
“Given the global digital transformation, NAICOM sees the need to develop cyber insurance products,” she said, adding, that NAICOM was collaborating with NITDA and the Nigeria Data Protection Agency to achieve this.
“Operators should begin engagements to roll out cyber insurance products,” she added.
Nwachukwu explained that NAICOM remained committed to creating an enabling environment for insurance practitioners, and is currently discussing ways to secure Nigeria’s aviation industry, given recent risks.
She said the NAICOM remains committed to enforcing third-party motor insurance and seeks collaboration on its innovation lab as well as encouraged practitioners to meet requirements and ensure credibility in filing financial statements and returns.
She went further to emphasize that the Commission will release the draft guidelines on third party insurance to get comments from the operators before making it a law.
The NAICOM in partnership with the Nigerian Police Force on February 1 commenced enforcement of the mandatory third-party insurance.
This collaboration aims to enhance road safety and protect motorists and third parties by enforcing existing insurance regulations.
