By LOVETH AZODO, Lagos
The National Insurance Commission (NAICOM) has indicated that the kick-off date for Risk-Based Capitalization (RBC) may not elude 2024.
Further, the regulatory body expressed optimism that going by progress reports of the insurance sector, it is on track of achieving long-awaited N1 trillion Gross Premium Income (GPI) target by close of the year, 2023.
These constitute the highlights of Insurers Committee meeting held in Lagos, Friday as NAICOM mandated Nigeria Insurers Association (NIA) to publish outstanding claims within two weeks timeframe.
Ebelechukwu Nwachukwu, Chairman of the Publicity Sub-Committee of the Insurers Committee, emphasized the significance of continuous improvement in risk-based supervision for the growth of the insurance industry and the implementation of risk-based pricing.
She said that the committee’s transformation roadmap includes proposals for increased awareness, enhanced market conduct, insurer partnerships with telecommunications and non-insurance channels, digitalization improvements, and the deepening of the talent pool within the insurance sector.
Rasaaq Salami, Head of Corporate Communications and Market Development, NAICOM, assured stakeholders that the finalization of Risk-Based Supervision (RBS) is progressing, emphasizing the exhaustive nature of the exercise. He clarified that the commencement of Risk-Based Capitalization depends on the completion of Risk-Based Supervision.
Addressing outstanding claims, Salami disclosed that NAICOM has mandated the Nigerian Insurers Association (NIA) to publish details on outstanding claims in prominent newspapers. This initiative aims to facilitate policyholders in claiming their settlements.
The NIA is given a two-week timeline to execute the publication, with a three-month monitoring period to assess improvements. If progress is lacking after three months, regulatory action may be taken.
“The report from the insurance company is that some of these outstanding claims is not as if the companies are not really ready to pay, but the policy holders, some of them have not come up with the appropriate documentation to conclude on this process. And that is why we gave this, uh, directive from the insurance committee that it should be done.
The other improvement and the addition today is that the NIA has been mandated to do this publication, in within the next two weeks for the next three months, we will monitor and watch, take statistics of what has been done, if after three months there are no improvements then we take it up as the regulator, that is when we can now ask the insurance companies to go out there and do their publication,” he said.
Salami reaffirmed NAICOM’s commitment to the passage of the consolidated insurance bill, assuring that the industry is aligned in this regard.
Reflecting on the industry’s performance, Salami noted significant growth in Gross Premium Income (GPI).
“ We have moved far ahead from where you were to a greater height, In 2021 we have a gross Premium of 620bn, And in 2022 we have 720bn and in half year of 2023 we have 551bn and third quarter report we are currently looking at we have already exceeded the annual of last year which means that by the end of this year we might just be hitting the almighty 1trillion we have been talking about and base on that assessment we think the industry has performed well not just on GPI but on claims payment also we have seen a lot of improvement in that regard.”
Salami commended improvements in claims payment and highlighted ongoing digitalization, the creation of new products, and increased engagement between operators and customers as signs of a changing and dynamic insurance landscape.
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