Insurers Ordered to Speed Up Claims Settlement
By Patience Ikpeme
The National Insurance Commission (NAICOM) has ordered that all insurance companies must significantly reduce their outstanding claims by the end of this year.
There will be zero tolerance for unnecessary delays in settling valid claims.
Olusegun Ayo Omosehin, the Commissioner for Insurance and CEO of NAICOM, made this statement on Wednesday during the 2024 Insurance Directors’ Conference held in Lagos.
He stated that NAICOM is committed to enforcing the law and will take action against any company that fails to pay legitimate claims. “If a company cannot honor valid claims, it has no place in our industry,” Omosehin said.
He also noted the importance of financial stability in the insurance sector. To succeed, companies must follow the rules and prepare for new regulations. “Proper capitalization is no longer optional. We must prioritize strong financial health to tap into target markets and manage current challenges,” he added.
Over the past year and a half, NAICOM has been reviewing insurance companies under a new supervision approach, although the review is still ongoing. Omosehin called on the boards of these companies, which are the highest decision-making bodies, to focus on proper governance, risk management, and compliance. Adhering to these principles will lead to better decisions, transparency, and regulatory compliance.
Omosehin reiterated NAICOM’s dedication to aligning the insurance sector with the Nigerian government’s goal of growing the economy to $1 trillion by 2030. He noted that achieving this goal requires more than just talk; a strong regulatory framework is essential. NAICOM plans to work closely with the National Assembly to ensure the successful passage of the 2024 Insurance Reform Bill, which will support this effort.
As part of its strategic plan, NAICOM has identified five key priorities: protecting policyholders and boosting confidence in the insurance industry, enhancing its supervisory capabilities, ensuring the safety of institutions, encouraging innovation and sustainability, and improving access to insurance in Nigeria.
