An insurance expert, Mr Malachy Maduako, has urged the National Insurance Commission to implement and enforce stringent rules especially, in this period of recapitalisation to birth strong and competent insurance indsutry. In an interview with Daily Sun, Maduako said that Nigerian insurance firms are not living up to international standards in service delivery specifically in the area of claims settlement.
He stated that a major reason Nigerians have strong apathy towards insurance is not necessarily due to lack of finance to get policies but because many firms do not pay claims and for the few which do, they are not prompt to meet policyholders purposes for which they invested.
Maduako said that until this challenge is taken care of , the nation’s insurance penetration level would reman low.
“NAICOM must come up with stringent measures for insurance firms that are not getting it right especially as regards claims payment which is a major problem associated with companies. The key reason people acquire policies is to meet targets. So when they are not paid claims as at when due, it disrupts their budget and they lose trust in insurance
“Insurance is a viable instrument, and any country that chooses to take it serious will definitely have their standards improved over time, not just the standard of the economy but that of an average citizen. The effective functioning of the insurance industry lies in the strict implementation and enforcement of rules of the regulator so, NAICOM has a lot of work to do in ensuring the industry is strong,” he stated.