NAICOM profiles insurance firms with huge unsettled claims for sanctioning

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…Says era of huge backlog of claims is over

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In a bid to ensure necessary regulatory actions in the face of the nation’s dwindling economic outlook, the National Insurance Commission (NAICOM) has announced its commencement of profiling of companies with huge unsettled claims, with a view to bringing to bear, healthy   operational focus in the industry.

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Commissioner for Insurance, Sunday Thomas, who dropped the hint at the opening session of the 2020 Insurance Directors’ conference, said the era of huge backlog of claims is over and should no longer be tolerated in the industry.

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Thomas said, “The Commission is profiling companies with huge unsettled claims for necessary regulatory action, even as 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.”

The Commissioner  called for shift in focus to service delivery away from the conference theme: “Insurance Industry Post Pandemic: The Pursuit for Survival and Growth,” stressing that this would go a long way making the companies seek reasons to settle clients’ claims and less reasons for repudiating them.

He, essentially, enjoined industry operators to strengthen their human and financial capital for effective participation in big ticket risks, noting, “It has been observed that the gains of domesticating policy of the government as enshrined in the Nigeria Content Development Act, 2010 is gradually losing its meaning for the insurance sub-sector, as more businesses, especially in the oil and gas and the aviation sectors are now being re insured abroad.”

Thomas who lamented the steady decline in the annuity business said, “Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry,” noting that “these are the areas where the industry can impose itself on the economy through the control of funds for national development.”

Emphasisig the all-important need of the ICT, he further noted, “the Industry must invest handsomely in technology, one of our key drivers for developing the market,” urging the Institutions to be prepared to digitalize their processes, procedures and systems in order to make their operations seamless and real time.”

The Commissioner who emphasized the need for firm’s popularity, stressed the imperative to invest enormously in awareness campaign about insurance, as reality has dawned on us that only organizations which place premium on requisite campaigns draw the necessary attention, noting that one of the industry’s biggest challenges, among others, is lack of awareness of insurance and its enormous benefits. “This must change for the better,” he further noted.

  • Tags: Sunday Thomas, NAICOM

 

 

 

 

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