RBS: NAICOM Tasks Insurers On Improving Documentation For Effective Implementation

By LOVETH AZODO, Lagos

…Insurers To Simplify Policy Documents To Curb Reputational Challenges

The National Insurance Commission (NAICOM) has urged Insurers to improve their documentation to achieve effective implementation of the Risk Based Supervision System for optimal results.

This is just as Insurers have concluded plans to add a ‘key fact’ page in policy documents to ensure simplicity and understanding of Insurance products by the insuring public before purchase.

Commissioner for Insurance, Sunday Thomas urged Insurers Today at the Insurers’ Committee meeting in Lagos

The NAICOM Boss revealed that the guideline for the implementation of the RBC will be issued at the end of April 2022.

He said “improved documentation in d Insurance industry will ensure that whenever we commence the risk base supervision we will get result.”

On the large number of unpaid claims, Chairman, Sub-Committee on Publicity and Communications, Insurers Committee and Managing Director, NSIA Insurance Limited, Mrs Ebelechukwu Nwachukwu told Newsmen that in a bid to curb reputational challenges Insurers have resolved to enlighten the insuring public on how to lodge a claim and how important documentation is in claims processing addung that policy documents will now include a ‘key fact’ page.

“We found out that most people dont read the policy documents and our sales people don’t tell you what is in there, u typically dont know what u have bought and what the exclusions are. That is where our reputational challenges are coming from, the subcommittee proposed on having a key fact page on the policy document,” she said.

On the increase in premium for third party motor Insurance policy, she said that discussions on the third party price and Ecowas brown card is still ongoing.

“We don’t have the final position on the price change yet but definitely that will soon be communicated. The commission had charged us to complete that process by the end of April. The NIA and NAICOM will inter phase so that can happen,” she said.

It would be recalled that the Committee Last year, said that the new rate for third party motor insurance policy will be announced by January 1, 2022.

Nwachukwu added that the commission urged Insurers to ensure utmost usage of the portal and correct uploads. “The commission is trying not to use santions but to ensure that we use the portal for all our reporting,” she said.