NAICOM Boss Harps On Delay Claims Processing

By LOVETH AZODO, Lagos

The commissioner for Insurance, Mr. O.S Thomas has urged insurers to develop new technologies that can aid in fast tracking claims processing and distribution channels in their operations to enable better customer experience.

The National Insurance Commission Boss said this in his address at the 2021 Insurance Professionals’ Forum hosted by the Chartered Insurance Institute of Nigeria (CIIN) held recently in Abeokuta, Ogun State with theme ‘Nigerian Insurance Industry in the Digital Age’

According to him, this year’s Forum, the Industry would be abreast of the need to encourage Disruptive Growth – through a reordering of priorities and cultural change.

“Cultural changes from traditional products offering to Customer-centric biases, Investing in disrupting our traditional Business Model, Matching current workforce with Future Needs – The skills that will be critical in the future will likely be quite different and existing roles will likely require broader skill sets in the future.

He called on insurance operators to developed Talents for Disruptive Innovations, that creates a new market and value network and eventually disrupts an existing market and value network.

“Adopt Disruptive Technology (Cloud Computing, Mobile Technology, Artificial Intelligence, Block Chain, Internet of Things) at the minimum, develop New Products, Enable better Customer Experience, develop new channels of distribution, automate processes, pursue faster claims processing, deploy Data Analytics and ensure Information Security”

“The Insurance industry needs to catch up quickly with new technology, innovations, changing environment (from traditional to digital), developments and changing customer expectation.”

“We are in the digital world and can no longer be playing the ostrich by being less digital in our operations. The only constant thing is change and there is need to quickly join the digital wagon to bring transformation to our industry.” he said

In his welcome address, Governor of Ogun State, Prince Capo Abiodun stated that the challenges posed by the pandemic calls for the need to upgrade the digitalisation processes in insurance operations.

“The insurance industry must come up with new products and services that will meet the ever involving pattern of this virtual, artificial intelligence driven economy.”

“We must realise that just as there are risk in the traditional processes there are also risk in the digital processes hence the need for rigorous enlightenment of proven risk in virtual transaction.”

He assure The management of the professional body (CIIN) that his administration will continue to keep their doors open to all collaborations.

“We unveiled an online platform for third party motor insurance, this platform is one of our steps to enforce compulsory insurance, this should create value for all stakeholders, we want our people to easily buy geniune third party insurance, eliminate fake insurance certificate and prompt payment of claims, this platform is open to all insurance companies operating in Ogun State.”

“We have commenced the implementation of our universal health insurance scheme, this scheme is particularly to enable all sector adhere to the new out of pocket expenditure and also increase the access of health insurance regardless of socioeconomic status.” he said.

Also Speaking, an administrator, a business thinker and customer advocate currently involved in sharing advisory services on insurance and risk management, Mr Ekerete Ola Gam-Ikon suggested that insurers should sell insurance products in local languages to aid understanding and acceptance of insurance especially micro insurance which is designed for the informal sector.

Reacting to the local language in selling insurance, One of the participants, Mabating Director Afri Global Insurance Broker LTD, Mr Kasmire Azubike, an insurance broker said that using I would not say it will not work but it will be difficult, right now people find it difficult to convince the educated ones using our conventional language English, so how possible going to the locals speaking the local language, it will be very difficult, and remember insurance like every other sector has its own terms so how do you interpret that?

On the Forum, he urged that the resolutions should be implemented to ensure maximum impact of the Forum in the industry.

“For instance, the issue of no premium no cover has been a very burning issue in the industry for a very long time, and dominating the professional forum but I can say that after a very long time after a series of complain NAI COM was able to take that bold step to get that implemented, so I want to believe that some of these ones will be implemented but it is actually taken time.”

“We are talking about technology and digitalisation, we are almost behind, it is not just to gather and talk about these things, the question is what can we do, what practical steps can we take to make sure that people are implementing it?”

“I want a situation where NAICOM will come evaluate what we have done in my company and probably come with their experts, make some input by the time others see it they will be encourage to do same, technology is actually very expensive, its not something you will just do and abandon.”

The Managing director Heirs insurance, Mr Niyi Onifade commended NAICOM for the development of its portal.

“He said The NAICOM portal is just the beginning, let us believe we will see more. Yes people need insurance but they need digital experience.” he said.