… As Omosehin Warns Against Claims Payment Delay, Pushes For Adequate Capitalisation
By CLEMENT NWOJI, Abuja
The National Insurance Commission (NAICOM) has marshalled out five priority areas critical to facilitating the insurance sectors capacity to de-risk $1 trillion economy being targeted by the federal government in 2030.
This is even as the apex insurance sector regulator urged insurers to endeavor to reduce their outstanding unpaid claims before this year elapse, adding they should as well plan ahead of the Risk-Based Capital regime as “adequate capitalization is no longer optional”.
The Commissioner for Insurance and NAICOM Chief Executive Officer, Olusegun Ayo Omosehin, spoke Wednesday while making opening remarks at the 2024 Insurance Directors’ Conference in Lagos. The theme of this year is “Board Performance in the Nigerian Insurance Industry: A GRC Approach”. This focuses on the performance of the Board and the critical role of Governance, Risk and Compliance (GRC) principles.
Assuring that NAICOM is committed to aligning the insurance sector with the
President’s goal of growing the Nigerian economy to USD$1 trillion by 2030, Omosehin noted that de-risking such economy demands going extra milles by insurers.
To enable the sector to contribute its quota and de-risk the economy, he disclosed the Commission’s strategic plan embedded in five key priority areas including: to “safeguard policyholders and improve confidence in the insurance industry, Strengthen our supervisory capabilities, Improve safety and soundness of our institutions, Foster Innovation and sustainability of the insurance industry, and Enhance overall insurance accessibility and penetration in Nigeria.
According to the NAICOM Chief, “Unifying our efforts to embed these critical pillars across all stakeholders’ strategies will ultimately redefine the industry’s
landscape and chart a clear path to success.”
On the theme of the conference, Omosehin noted that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk
management and a very low compliance culture.
But he said, “To overcome these challenges, the Board as the highest policy making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and
Compliance principles. If carefully implemented this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.”
Further, he warned against unnecessary delays in the settlement of genuine claims, stressing that it would no longer be tolerated.
“As a Commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations. Simply put, if a company cannot honor legitimate claims, it has no place in our industry.
“The financial stability and soundness of our institutions are now more vital than ever. To remain relevant and competitive, our institutions must comply with all the relevant prudential regulations and requirements”, he cautioned
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