Insurance industry to harmonize processes for claims payment
Insurance industry are working to harmonize the processes of claims payment in the industry.
The technical committee of the insurers and the Nigerian Council of Registered Insurance Brokers (NCRIB) are working to set minimum documents required for different classes of business for claims payment.
The Chairman of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed said at a quarterly media chat in Lagos, “We are trying to harmonise that process as an industry to limit the number of documents required.” He said that the industry has come to the position that it was time to have an industry restriction on the minimum documents required for claims to be paid as an industry standard.
He said this point was reached where valid claims are logged with ease and paid in the shortest possible time.
According to him, the history of claims payment has been registered as an industry obligation, he cited the claims payment record of 2023, when the industry recorded a premium income of N1.1tr and paid N536.5 bn as claims translating to 53% of premium received.
“Despite the quantum of claims paid we still believe we have a lot more to do especially around the ease of making claims and the timely payment of those claims.” He adds that “The hallmark of any insurance company worth its licence is the timely payment of claims” and should be the delight of both the insurers and policyholders. He said the policy is a promissory note that the insurer has the obligation to pay claim when the risk crystallizes.
The internal combustion of the industry and piercing eagle eye of the Commission is now driving the coming transformation in claims payment across different classes of risks. The services of a fintech has been engaged to get it right now and in the years coming after. Ahmed infers that is the reflection of high score the industry attached to fixing the claim challenge as it relates to making the claims processes a delight for all.
On the recent publication of pending claims in the books of insurance companies by the National Insurance Commission in their website, he said the action has given comfort to policyholders. All companies in the market have been put on notice that the Commission is watching and there is a zero tolerance for not paying claims already admitted.
However, he said several companies have reacted to the publication, some said most of the claims listed have been paid, some of them are being disputed or are in court. He said the Association had reached out to members requesting them to reconcile with NAICOM on the prevailing state of each claim listed and within a stipulated time frame, NAICOM would in return update the list on their website.
