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How Non-settlement of Claims Slow Down Development in Insurance Sector – NAICOM



The Commissioner for Insurance O.S. Thomas has tasked insurance operators on prompt payment of genuine claims.

Thomas tasked insurers at the 2021 Insurance Directors’ Conference Wednesday in Lagos.

According to him, ignoring the settlement of genuine claims has been setting the industry on a reverse gear in its developmental efforts.

He said “A few amongst us have been making this work a tedious one by not paying claims promptly.”

“We should know as a fact that insurance business is about payment of genuine claims and anything short of that will continue to hurt insurance business in the country thereby giving the industry poor reputation, perception and image.”

He commended President Muhammadu Buhari, GCFR for his support to enhance recognition, closeness and positive relationship with the Federal Government and by extension, the states.

“As I said in one of our gatherings recently, the industry in its more than 60 years history has never had it this good in terms of recognition, closeness and positive relationship with the Federal Government and by extension, the states.

He urged operators to take this as a golden opportunity to take insurance to its rightful place in our economy.

“We indeed manage an industry that helps others to survive but, you may all agree with me that the insurance industry needs to survive first in order to conveniently shoulder the responsibility of helping other businesses to survive.” he said.

On IFRS 17, he urged operators to follow up on the implementation of International Financial Reporting Standards (IFRS 17) in their respective companies.

On the Risk based supervision, he said “Again, the volatility, dynamism and complexities in the operations of today’s businesses has necessitated the need for a risk-based approach to the way and manner the Regulator conducts its supervision and inspection of insurance entities.

“We incepted the conduct of a pilot inspection of some select companies in September this year preparatory to full implementation and the reports are now being reviewed. Going forward, inspection of insurance entities will be on the RBS approach,” he said.

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