By David Akinmole
The National Insurance Commission (NAICOM) has urged underwriting firms in the country to pay all outstanding claims owned by policyholders before December 31, 2025, to avoid regulatory sanction.
This was revealed by the Head of the Communication and Stakeholders Management Sub-Committee of the insurers’ committee, Ebelechukwu Nwachukwu, after the Insurers’ Committee meeting, in Lagos.
Ms Nwachukwu said the commissioner advised insurance companies’ Chief Executive Officers to ensure that no outstanding claims are captured at the close of their 2024 financial accounts.
She said the NAICOM boss tasked the insurance companies’ executives to defend the industry through payment of genuine claims, which is integral.
“The regulator said it would be checking in an intensive and focused manner the outstanding claims in the insurer’s books.
“The commission said its focus is on the soundness of the insurance industry, measured by the ability to meet their obligations when due,” she said.
According to her, the commissioner also charged the insurance companies to take steps towards recapitalisation by evaluating their financial position regarding the need to raise fresh capital.
She said the charge came from the regulator, having exposed a draft of the Risk-Based Supervision (RBS) regulations to the operators if recapitalization takes off.
Ms Nwachukwu revealed that the commissioner further encouraged brokers to ensure strict compliance with the “no premium, no cover” regulation, having observed some violations of the regulation.
She also stated that the regulator encouraged insurance operators to protect data and submit their companies’ financial statements early enough to create more confidence in the industry.
The sub-committee chairman said the commission also wants insurance operators to pay specific attention to the implementation of the 10-year Insurance Strategic Plan.
Ms Nwachukwu added that the commissioner charged the insurance operators to also pay attention to the legal and regulatory framework for the industry under the Insurance Bill 2024.
“He spoke about focusing on compliance issues under the prudential guidelines released by NAICOM to the insurers and putting an end to corporate governance abuses recognised within the industry,” she said.
She further said the regulator insisted that insurers get the proper approval from NAICOM before the newly appointed executive director of insurance companies assumes their appointment.
Also speaking at the briefing, the Head of Corporate Communication, NAICOM, Abba Khaleel, spoke about focusing on compliance issues under the prudential guidelines released by the commission to the insurers and putting an end to corporate governance abuses recognised within the industry
According to him, the industry in 2023paid N536.5 billion in claims and many people are still in doubt that insurers pay claims.
Irrespective of the efforts made to project huge claims paid yearly by underwriters, unless claims beneficiaries begin to speak out, many would not still believe that claims are paid.
