As part of measures to reposition and strengthen the insurance industry, the National Insurance Commission (NAICOM) has said it is compiling a list of insurance companies with huge unsettled claims for necessary regulatory actions. According to experts, the industry has over N40 billion unpaid claims.
The Commissioner for Insurance, Sunday Thomas, while speaking at the 2020 insurance directors’ conference organised by NAICOM and the College of Insurance and Financial Management (CIFM) in Lagos had charged underwriters to pay rapt attention to claims payment especially, now that the industry is fighting negative public perception. Thomas while calling on insurers to be responsive to the plight of their clients in prompt settlement of claims, equally charged operators to strengthen their human and financial capital for effective participation in big ticket risks.
“The era of huge backlog of claims should no longer be associated with our companies, and while the commission is profiling companies with huge unsettled claims for necessary regulatory action, companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct.
‘Our focus must shift to service delivery which will make our companies to seek more reasons to settle client’s claims and less reasons for repudiation of claims.”
According to him, “It has been observed that the gains of domestication policy of the government as enshrined in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector. More businesses especially in the oil and gas and the aviation sectors are now being reinsured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development”, Thomas said. He also stressed the need for the industry to invest handsomely in technology, adding that this has remained one of the key drivers for developing the market. Furthermore, he noted that the recent crises associated with #EndSARS protest which lead to the destruction of lives and properties is indeed an eye opener and an opportunity for firms.