The Managing Director, Nigeria Reinsurance Corporation, Mrs. Isioma Chukwuma, has called for improvement in the business of underwriting in the country, stating that the unfortunate situation of the industry was due to bad underwriting of some insurance operators in the country.
She said prospects in insurance industry were visible, but that operators needed to work hard and in harmony with the insurance regulations.
According to Chukwuma, This would make the sector compete with its counterparts in the world.
She also urged insurance operators to improve their knowledge on insurance, as she observed that most operators in insurance industry in the country were not really doing well due to inadequate knowledge.
Chukwuma, said that efficient knowledge of the field would positively impact on the business of the adopting firms, adding, “It would have a multiplier effect on the entire insurance industry.
“The insurance penetration and acceptance could increase, if all operators are ready to improve in the way they conduct their businesses’.
She added that while many underwriting firms were struggling with this challenge, others had been thrown out of the business, and therefore called on operators to transform their conservative lifestyle and adopt a flexible system of operation, believing this would greatly help in moving the industry to the next level.
She advised insurance companies to be cautious on paying claims that were not genuine, adding that such payments had put the balance sheet of most insurers in red light.
“We have to be careful not to pay claims that are not genuine though I know some insurers have done this out of ignorance, which is harmful for the insurance industry.”
“Ensure that proper documentation is presented by the claimants and verified by the insuring firms on time to ensure that the claim process does not drag for too long.
“Payment of claim is a major function of insurance companies as well as a very sensitive function. “While companies see how quickly they can pay compensation when a risk occurs, the underwriters must also ensure that the claims settled are truly genuine,” she added.