NAICOM moves to tackle insurance premium rate cutting

From left: Deputy Commissioner Finance and Administration National Insurance Commission, Ekerete Ola Gam-Ikon; Commissioner for Insurance Olusegun Omosehin and Deputy Commissiner Technical Dr. Usman Jankara at the event.

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has adopted ‘Sell-What-You-Can-Service’ Principle, to curb the menace of insurance premium rate cutting that has led to loss of billions of naira revenue in the underwriting sector.

According to the Commissioner for Insurance Olusegun Omosehin, who said this at the recently held 2025; NAICOM Seminar for Journalist in Abeokuta, Ogun State, the principle makes it compulsory for insurance companies to pay claims on any policy that is genuinely covered.

Omosehin said with the principle, any insurance company that decides to offer cover below statutory premium, must be ready to pay full claims when the risk covered happens.

“Our stance on claims settlement is unequivocal. We maintain zero tolerance for non-settlement of genuine claims. As a result, insurance companies are expected to adhere to a “Sell-what-you-can-service” principle, ensuring they only offer products they can adequately support and deliver,” he said.