NAICOM frowns at delay in settlement of genuine claims
The National Insurance Commission(NAICOM) has directed insurers operating in the country to pay up all their outstanding genuine claims to policyholders by the end of December 31, this year.
The Commissioner for Insurance and CEO of the Commission, Ayo Omosehin, gave the directives at the 2024 Insurance Directors’ Conference, with the theme; “Board Performance in the Nigerian Insurance Industry: A GRC Approach” in Lagos.
He noted that the primary focus of the Commission is to ensure that prompt payment of genuine claims by insurers was paramount adding that unnecessary delays in the settlement of genuine claims will no longer be tolerated.
According to him, the need to address certain critical areas in the expansion of the insurance industry and to safeguard the interest of policyholders in the country.
“We expect all insurers to significantly reduce their outstanding claims by the end of the year, as emphasized during the last Insurers’ Committee meeting. Unnecessary delays in the settlement of genuine claims will no longer be tolerated”.
He said “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.
“We will ultimately redefine the industry’s landscape and chart a clear path to success,” he said.
Omosehin further called for the urgent reassessment of the industry performance in governance, risk and compliance (GRC) principles.
He asserted that “In today’s global business landscape, integrating GRC at the Board level is vital for business success and sustainability.
“It is no longer optional, but an essential ingredient for enhancing decision making, transparency, accountability and risk management.
“Effective GRC ensures that boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance.”
He highlighted five strategic plans for directors of insurance institutions to align their operations with the Federal Governments economic plan.
He affirmed NAICOM’s commitment to aligning the insurance sector with President Bola Tinubu target of growing the Nigerian economy to one trillion dollars by 2030.
In view of this, he said the Commission is working towards creating the necessary regulatory framework needed to achieve meaningful contribution from the insurance sector.
