NAICOM Sparks Up Competition Amongst Insurers, Commence Ranking Base On Service Delivery

By LOVETH AZODO, Lagos

***NIA Laments As Claims Increase To 207Bn

The National Insurance Commission (NAICOM) has stated that going forward insurance companies will be assessed and ranked on the quality of the quality of their service delivery to customers.

This is just as the Nigerian Insurers Association (NIA) disclosed that in the past ten years claims have increased from 27B to 207B.

The Ag. Commissioner for Insurance, O.S Thomas represented by Director, Head Office Branch of NAICOM, Adamu Balanti stated at the NAICOM’s 2nd Interactive Session with Consumers of Insurance Products and Services on Monday in Lagos that rankings and assessment in this regard will be made public adding that the initiative is geared towards provoking healthy competitions amongst insurers.

In his Optimism, Thomas said that the initiative will boost consumers’ choice and confidence in insurance.

He said “It is imperative to note that NAICOM is well positioned to ensure adequate protection of policyholders at all times. As you may all be aware, the topic on consumer protection has become central to regulators around the globe and the insurance sector is not an exception. Continuing efforts and new reforms are being put in place by NAICOM to ensure prompt payment of genuine claims by insurers.”

“The Commission has strong passion that insurance consumers are served right and feeling your pulse on the services offered you by your insurers will feed us with ingredients needed to strategise on repositioning the industry for better services.”

“There is no doubt that we all desire a paradigm shift from the current state of our industry to a better state where we will not be grumbling on issues of prompt claims settlement, pricing of insurance products, value for money, innovative products etc.”

On the Importance of the meeting he said “However, you will agree with me that none of these could be achieved if we don’t come together and discuss our successes and failures. I therefore implore you to feel free to express your views and speak on your experiences as consumers of insurance products in Nigeria.”

Delivering his paper on Prompt Claims Settlement: Issues and Challenges, the President of National Insurers Association who was represented by Director of Operatuons, NIA stated that in 2018 claims on Life cover stand at 93.4B, 53B on Oil and gas adding that the annual growth rate in the industry stands at 22.5percent.

Also, Smart mentioned that 50percent of premium collected by insurers are paid out as claims 2018 stressing that in 2018 claims paid went higher as against premium.

“If care is not taken we may be wiped out of business because it is the premium we use to pay claims,” he lamented.

On Issues in Claims administration , he stated that late notification, lack of proper documentation, exclusion clauses, failure to take preventive measures and non-payment of payment are difficulties faced by insurance companies on claims administration.

“Non payment of premium is vital to insurance, don’t expect claims when premium is not updated” he said.

Proffering solutions to the challenges of insurance companies, he urged consumers to avoid underinsurance, comply with policy terms and conditions, updating of premium as at when due and seek professional advice.