By Henry Uche [email protected]
The are strong indications that the confidence which hiterto was resposed in the business of insurance is begining to wean faster as a result of some unprofessional conduct and practices that have crept into the industry in recent times.
Indeed, the negative reaction and lukewarm attitude are the sort of feelings that comes with a proposal for any insurance policy. This, may have informed the low patronage and acceptance of insurance as a business in Nigeria. But despite efforts put in by some concerned insurance professionals to restore the lost glory bedeviling the insurance industry, the experts insisted that issues such as; perennial trust deficit, hidden clauses, complexities and craftiness are major setbacks to the growth of the industry.
The experts who converged at the maiden edition of ‘Claims Advocacy Conference’ organised recently by Carefirst Consult and had stakeholders which included consumers of insurance products , Insurance brokers, agents, loss adjusters among others maintained that when trust is lost, everything is lost and the essence of being in business is quashed and dashed.
They also revealed that a major concern that has punctured the integrity of insurers is the alleged craftiness of underwriters where most insurance companies deliberately makes contractual terms and conditions (T&C) complex and in most cases – blurred and esoteric, leaving most unsuspecting or unlettered policy holders either confused at the beginning or perplexed and frustrated in the long run.
At the event, many insurance customers gave instances where they were referred to some unprintable or ineligible T&C (at the verge of receiving claims/ settlements) which makes the entire process cumbersome. For such policyholders, the insurance companies have not only mislead them but deceived them. For this singular reason, insurance companies were tasked to meticulously come clean while engaging potential or prospective policyholders.
More so, insurance brokers and agents were not spared in the value chain as critical stakeholders saddled with the responsibility of giving genuine representation of insurance companies they stand for. Since trust has been a major challenge overwhelming the sector, brokers and agents alike are cautioned to exhibit utmost good faith, ethical practices and professionalism to members of the public.
To find a lasting solution to this sad development, NAICOM was fingered as the watchdog that has the statutory power to bring any erring insurance company to its knees in event of any malpractice against policyholders in line with one of its strategic goal which is, “To improve trust and confidence in the insurance sector” and boost the number of Nigerians with insurance policy by making sure all genuine claims are paid as and when due.
In his address, the organiser of the conference who is also the Principal Consultant of Carefirst Consult, Mr. Gus Wiggle, affirmed that with the high level of negative perception and distrust between the consumers and the insurance companies, it would not be out of place if insurance companies conscientiously delight their customers with ‘second to none’ service delivery and go the extra mile to stand out from the crowd to rake in extra clients, since trust is central in insurer – insured relationship.
With the theme, “Catalyzing Insurance through better Claims Experience”, Wiggle who was a former Chairman of Nigerian Insurers Association (NIA), avowed that with his wealth of knowledge in insurance, CAREFIRST CONSULT (a claims Management firm) has come to fill the void in the insurance ecosystem and add to the value chain of insurance.
According to him, his desire is to be a leading provider of claims management, recovery services, arbitration and risk management consultant in the country.
“We envisioned to improve the insurance experiences of policyholders and enhance the public perception of the insurance industry in Nigeria with regards to claims management.”
Wiggle maintained that victims of one insurance fraud or the other and their families would have no course to weep again since his topnotch team would manage the processes to minimize the emotional stress that sets in and ensure compensations are timely and appropriate. “Our team has professionals of diverse background and expertise who have participated in research work on claims administration and management in Nigeria prior to setting up Carefirst Consult.”
He posited that the huge trust deficit ravaging the insurance industry which is evident from the horrifying stories that policyholders with claims share, has even made those who do not have policies to tell the ugly stories even more better.
“Policyholders complained to the regulator, National Insurance Commission (NAICOM), yet have had to wait for their payments, sometimes for over one year. When will NAICOM be coming hard on insurers who unduly delay claims or not paying at all?
“Is it out of place to publish the names of insurance companies who are defaulting in payment of claims particularly after they have executed discharge vouchers to an upward of three months to send a signal to the weak companies to wake up or pack their bags and leave the stage for the real actors to deliver services they have promised their consumers.
“Has brokers and loss adjusters helped to alleviate the pains of the consumers in time of claims or added to it? One of the five strategic goals of NAICOM is “improve trust and confidence in the insurance sector, yet this challenge has lingered.”
He revealed that his Carefirst could be called a child of circumstance, after series of complaints from Policyholders against some insurance companies.
“We have insurance companies asking for police report for a lone accident with an estimate of repairs of N250,000. Knowing that getting police report does not come cheap. The insured victim will have no choice but to abandon the claims knowing that paying the cost of the police report is almost as the cost of repairs of the accidented vehicle. Honestly, making the processing of claims complicated is unnecessary.
“And I ask, must every claim dispute end in the court? What about the arbitration clause in every policy, how much have we used in-depth analysis? Effective dispute resolution enables parties to resolve cross-border disputes quickly and to get back on track. This is not to say insurance companies don’t pay claims.
“Why are insurance companies not celebrating their claims payment to the public under the wave of people saying they don’t pay claims? If you don’t blow your trumpets, who will blow it for you? We shall be the new watchdog for policyholders against insurance companies that want to deny or delay all genuine claims,” he added.