The National Insurance Commission (NAICOM) has warned Insurers that unnecessary delays in the settlement of genuine insurance claims will no longer be tolerated.
Commissioner for Insurance, and Chief Executive Officer (CEO) NAICOM, Mr Olusegun Omosehin gave the warning on Wednesday at the 2024 Insurance Directors’ Conference in Lagos State, with the theme, “Board Performance in the Nigerian Insurance Industry: A GRC Approach”.
Speaking, he noted that the Commission’s primary focus was on ensuring timely payment of genuine claims.
He said, it is expected that all insurers significantly reduce their outstanding claims by the end of the year, as emphasized during the last Insurers Committee meeting, warning that “unnecessary delays in the settlement of genuine claims will no longer be tolerated.”
He explained that as a Commission, NAICOM is committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations.
“Simply put, if a company cannot honor legitimate claims, it has no place in our industry,” he contended.
While stating that the financial stability and soundness of insurance institutions are now more vital than ever, the NAICOM boss noted that to remain relevant and competitive, the institutions must comply with all the relevant prudential regulations and requirements.
“We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so ensuring adequate capitalization is no longer optional. We must prioritize robust capitalization to effectively tap into target markets and navigate current industry realities,” he said.
Mr Omosehin maintained that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture.
To overcome these challenges, he said, the Board as the highest policy making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and Compliance principles, noting that if carefully implemented this would improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.
The CFI said, the Commission is committed to aligning the insurance sector with the President’s goal of growing the Nigerian economy to USD$1 trillion by 2030.
He said, the commission is committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector.
Acknowledging that de-erisking a trillion-dollar economy takes more than mere rhetorics, Mr Omosehin affirmed the Commission’s commitment to working with the National Assembly in delivering the required legal and regulatory framework which would flow from the successful passage of the 2024 Insurance Reform Bill.
He informed that the Commission has set five key priorities to deliver on the agenda. These include to safeguard policyholders and improve confidence in the insurance industry, Strengthen commission’s supervisory capabilities, Improve safety and soundness of insurance institutions, Foster Innovation and sustainability of the insurance industry, and Enhance overall insurance accessibility and penetration in Nigeria.
