BY NKECHI NAECHE-ESEZOBOR--Insurance sector operators will face regulatory action in the area of unsettle claims, the National Insurance Commission (NAICOM) has said.
The commissioner for insurance Sunday Thomas disclosed this today at the 2020 insurance directors’ conference, organised by NAICOM and the College of Insurance & Financial Management (CIFM) in Lagos, that is profiling companies with huge unsettled claims for necessary regulatory action.
According to him the era of huge backlog of claims should no longer be associated with our companies.
He however urged companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct.
He said “in the times in which we are require more prudent management of resources in order to meet all stakeholders expectations including ensuring quality return on investments.
“Our focus must shift to service delivery which will make our companies to seek more reasons to settle client’s claims and less less reasons for repudiation of claims.”
He also charged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks.
He said that it has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually loosing its meaning for the insurance sector.
He said: “More businesses especially in the oil and gas and the Aviation sectors are now been re insured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development.
“The Industry must invest handsomely in technology, one of our key drivers for developing the market. The Institutions should be prepared to digitalise 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.”
He noted that another lingering issue that has continued to hurt insurance business in the country, is the total lack of understanding of the business of insurance and the benefits that are offered.
He added that the strategy must change, insurance institutions must make themselves visible in all geo – political zones in the country and must take marketing of insurance products to a higher level than the present.
“As you may be aware, the Commission on its part has shifted its focus to market development for an inclusive development of insurance across all strata. These initiatives are anchored on Innovation, Distribution and Efficient Service Delivery. We expect that insurance institutions will also formulate policies along these direction.”