The National Insurance Commission (NAICOM) is out to seriously sanction any insurance companies with huge unsettled claims.
This disclosure
was made by the Commissioner for Insurance, Mr. Sunday Thomas, at the
on-going 2020 Insurance Directors’ Conference, jointly organized by
NAICOM and the College of Insurance & Financial Management (CIFM),
held at the Oriental Hotel in Lagos.
Mr. Thomas reiterated the need for the operators, post-pandemic, to
appropriately strengthen their human and financial capital for effective
participation in big-ticket risks to take advantage of the obvious
gains of the domestication policy in the Nigeria Content Development Act
2010.
In his words, Mr. Thomas stated, “More businesses especially in
the oil and gas and the Aviation sectors are now being reinsured abroad.
Of more concern is the declining participation of life companies in the
annuity business, which is the emerging business for our industry.
“The are the areas where the industry can impose itself on the
economy through the control of funds for naonal development. The
industry must invest handsomely in technology, one of our key drivers
for developing the market.
“The Institutions should be prepared to digitalize their
processes, procedures, and systems, in order to make their operations
seamless and real-time. The Commission is investing heavily in
automating its processes and expects nothing less from the insurance
institutions. An industry Information Technology Guideline has been
issued for the operators and the Commission requires your support and
cooperation for effective compliance.”
Why this matters
Prompt settlement of claims should be a top priority for the
insurance operators in achieving an excellent and responsive customer
service experience. Settlement of claims has been a serious nightmare
for quite a number of customers, resulting to the abysmally low
insurance culture in Nigeria.
Customers are more likely to patronize the insurance companies that
are prompt in claims settlement and by extension improve the industry
penetration in the market.
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