BY NKECHI NAECHE- ESEZOBOR–The National Insurance Commission on Wednesday told insurance directors that non payment of legitimate claims to policyholders by companies is a ground for cancelation of license.
The Commissioner for Insurance and Chief Executive Officer of NAICOM Olusegun Omosehin,disclosed this at the 2024 Insurance Directors’ Conference organised by College Of Insurance and Financial Management, ( CIFM), held recently in Lagos.
He noted that the Commission’s primary focus is on ensuring timely payment of genuine claims.
According to him 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.
“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.
He added that “the financial stability and soundness of our institutions are now
more vital than ever. To remain relevant and competitive, our institutions must comply with all the relevant prudential regulations and requirements. We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so ensuring adequate capitalization is no longer optional.
“We must prioritize robust capitalization to effectively tap into target markets and navigate current industry realities. The Commission, in the last one and half years have successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed.
However, we are using this medium to seek your cooperation as Directors of those institutions and demand compliance on issues that have been raised and directed to the various Boards, for attention.”
He urged directors as policyholders to develop and implement policies that promotes adherence to good governance, effective risk management and compliance principles.
“Our goal is to ensure sustainability, securing the long-term viability and future resilience of insurance entities. We all have a stake in the prosperity of our institutions since insurance sector’s growth is essential to the overall health and resilience of our national economy”
