NIA Set for Fintech Partnership to Fast-Track Claims Payment – Chairman

By LOVETH AZODO,  Lagos

The Nigerian Insurers Association (NIA) is set to collaborate with financial technology firms in a bid to shorten claims processing time and improve the overall efficiency of insurance service delivery in the country.

Disclosing this to newsmen, Tuesday in Lagos, NIA Chairman, Mr. Kunle Ahmed, said the Association will soon be inviting fintech companies to pitch innovative solutions aimed at enhancing the speed and transparency of the claims process.

He noted that the initiative is part of efforts to rebuild public trust and deepen insurance penetration in Nigeria.

“Despite the industry paying N536.5 billion in claims in 2023 which represents about 53% of the year’s gross written premium, there’s still significant room for improvement in the ease and timeliness of claim settlements. This is the only way to ensure sector sustainability and public confidence,” Ahmed stated.

He commended the National Insurance Commission (NAICOM) for publishing the names of insurance companies with outstanding claims and launching the Complaint Management Portal, describing the move as a strong step towards transparency and policyholder protection.

However, he acknowledged that some insurers have raised concerns about inaccuracies in the lists and called on them to engage the regulator constructively by providing updates on listed complaints.

Ahmed also reiterated NAICOM’s zero tolerance for delays in settling genuine claims and warned that companies that fail to comply risk facing regulatory sanctions, including possible license withdrawal.

In addition to fintech collaboration, the NIA chairman expressed optimism about the Nigerian Insurance Industry Reform Bill 2024, describing it as a game changer.

He highlighted its provisions on capital requirements, risk-based supervision, and consumer protection, noting that the bill currently awaiting presidential assent has the potential to reshape the industry and strengthen its contribution to national development.

He further lauded NAICOM’s circulars on solvency regulation, particularly the shift to risk-based supervision, stating that such frameworks align the industry with global best practices and enhance its resilience to economic shocks.