BY NKECHI NAECHE-ESEZOBOR–In its bid gain policyholders trust and improve insurance access across the country, the National Insurance Commission (NAICOM) said it will begin to rank insurance companies based on the number of claims received and settled annually.
Commissioner for Insurance, Sunday Thomas disclosed this while delivery his keynote address at the just concluded NAICOM 2022 Retreat entitled: “Improving Insurance Access through Market Development and Innovation in 2022 and beyond” for Financial Journalists in Uyo, Akwa Ibom, State, that the commission intend to publish such ranking for the insurance consumers to see.
“It has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though activities of few amongst the operators is jeopardising the efforts of the majority.
“We had before now agreed to start ranking companies on the number of claims received and settled on annual basis and we intend to publish such ranking for the insurance consumers. It is always an issue that put the entire industry on the edge. The Commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector,” he assured.
He also disclosed that the commission is deploying technology to boost access to insurance.
He said “We are exploring ways to take insurance to where the other financial sectors are or even surpass that mark. Financial transactions are more of a one-stop shop for everything and is either we key in or we lose the business to more innovative outlets that will seize it from us.”
He added that the commission is building a nationwide penetration structure that will open up insurance market across the country’s six geo-political zones.
The key strategy is to reach out to the states where insurance penetration is perceived to be very low as it considers insurance a a symbol of social and economic stratification.
He noted that the agency is doing this through its Risk Based Supervision Framework, Encourage investment in digital capabilities and automation – e.g. launching of NAICOM Portal, launch of the Bimalab Project on the 9th of February, 2021 and Enforcement of the compulsory insurance products in Nigeria – via partnership with agencies and states.
The rest are Capacity development programmes – Actuarial, competency framework etc, Sensitisation of various stakeholders – MSMEs on benefits of insurance, MDAs Insurance Desk Officers etc and Introduction of regulatory reforms and policies e.g issuance of web aggregators’ guidelines.
To achieve the desired results, the Commission, expects the industry to respond to these efforts by bridging the supply gap and ensure they follow up on it’s move to create awareness among high ranking policy makers in order to prove that the industry is ready for the booming opportunities awaiting them across the country.
