Insurance Firms With Bulky Unsettled Claims Risks Sanctions- NAICOM 

Yemisi Izuora

The National Insurance Commission (NAICOM) has commenced profiling of Insurance firms with heavy unsettled claims, as the regulator considers invoking regulatory sanctions against them.

The Commission, however, promised to upscale promotion of economic growth in support of insurance firms to help them meet their claims obligations.

The Commissioner for Insurance, Sunday Thomas, who stated this at a forum in Lagos, noted that the era of huge backlog of claims should no longer be associated with insurance companies.

He urged companies that are responsive to the plight of their clients in prompt settlement of claims to sustain the good business conduct.

Thomas urged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks, stressing 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 losing 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 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 said.

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