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 claiming their settlements in the country.
According to the commission, the report from the insurance companies is that some of these outstanding claims are not as if the companies are not ready to pay, but policyholders have not come up with the appropriate documentation to conclude the process.
This 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 initiative is aimed at making insurance subscribers in the market to claim their settlements.
Salami said that the two-week timeline given to the NIA is to execute the publication, with a three-month monitoring period to assess improvements in the industry, but if progress is lacking after three months, regulatory action may be taken.
The Commissioner for Insurance, Sunday Thomas, in one of the industry forums also said, while addressing the issue of claims in the industry, 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.
According to him, “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.
However, “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 road map includes proposals for increased awareness, enhanced market conduct, insurer partnerships with telecommunications and non-insurance channels, digitalization improvements, and the deepening of the talent pool within the insurance sector.
Nwachukwu said NAICOM has indicated that the kick-off date for Risk-Based Capitalisation (RBC) may not elude 2024.
Further, the regulatory body expressed optimism that going by progress reports of the insurance sector, it is on track to achieving the long-awaited N1 trillion Gross Premium Income (GPI) target by the close of the year, 2023.
She assured stakeholders that the finalisation of the RBS is progressing, stressing the thorough nature of the exercise.
He clarified that the commencement of Risk-Based Capitalisation depends on the completion of Risk-Based Supervision.
