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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has read a riot act to insurance practitioners that unnecessary delays in the settlement of genuine claims will no longer be tolerated.
The Commissioner for Insurance and Chief Executive Officer of NAICOM Olusegun Omosehin, said this today at the 2024 Insurance Directors’ Conference organised by the College of Insurance and Financial Management (CIFM) in partnership with NAICOM in Lagos, stating that the Commission’s primary focus is on ensuring timely payment of genuine claims – payment of claims and timely too and that It expects all insurers to significantly reduce their outstanding claims by the end of the year.
The conference was themed: “Board Performance in the
Nigerian Insurance Industry: A GRC Approach”
“Unnecessary delays in the settlement of genuine claims will no longer be tolerated.
“As a Commission, we are 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 submitted.
Omosehin said the financial stability and soundness of insurance institutions are now more vital than ever, adding that to remain relevant and competitive, insurance 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.
“The Commission, in the last one and half years have successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed. However, we are using this medium to seek your cooperation as Directors of those institutions and demand compliance on issues that have been raised and directed to the various Boards, for attention,” he posited.
The NAICOM boss urged directors as policymakers across insurance institutions to develop and implement policies that promotes adherence to good governance, effective risk management and compliance principles, stating that NAICOM’s goal is to ensure sustainability, securing the long-term viability and future resilience of insurance entities.
He maintained that directors have a stake in the prosperity of their institutions since insurance sector’s growth is essential to the overall health and resilience of the national economy.
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