By LOVETH AZODO, Lagos
The National Insurance Commission (NAICOM) has threatened to sanction insurance companies with backlog indebtedness arising from unsettled or repudiated claims.
Already, the apex insurance sector regulatory body said it has commenced blacklisting the unnamed defaulting companies for regulatory sanctions.
Commissioner for Insurance, Sunday O. Thomas made these disclosures while speaking at the opening session of the 2020 Insurance Directors’ conference in Lagos. The theme for this year’s Conference is, “Insurance Industry Post Pandemic: The Pursuit for Survival and Growth”.
According to NAICOM Chief Executive, “Our focus must shift to service delivery which will make our companies to seek more reasons to settle client’s claims and less less reasons for repudiation of claims.
“The era of huge backlog of claims should no longer be associated with our companies and while the Commission is profiling companies with huge unsettled claims for necessary regulatory action, companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct.
“Operators in the industry must strengthen their human and financial capital for effective participation in big ticket risks.”
He urged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks.
“It has been observed that the gains of domesticating policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually loosing its meaning for the insurance sector. More businesses especially in the oil and gas and the Aviation sectors are now been re insured abroad”.
Thomas who raised concerns on the decline in the annuity business urged operators to put more effort in the control of funds for national development.
“Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development.
Proffering solutions, he said, ” The Industry must invest handsomely in technology, one of our key drivers for developing the market. The Institutions should be prepared to digitalise their processes, procedures and systems in order to make their operations seamless and real time.
He reiterated that the Commission is investing heavily in automating its processes and expects nothing less from the insurance institutions.
“The need to invest massively in awareness campaign about insurance cannot be over emphasis as there seem to be a consensus that public perception of insurance still remains very low largely due to lack of awareness by the public.
“Another lingering issue that has continued to hurt insurance business in the country is the total lack of understanding of the business of insurance and the benefits that are offered. The strategy must change, insurance institutions must make themselves visible in all geo – political zones in the country and must take marketing of insurance products to a higher level than the present.
“The recent crises associated with #EndSARS protest which lead to the destruction of lives and properties is indeed an eye opener and an opportunity for companies to engage in massive awareness programs on relevant insurance cover for lives and properties of individuals and all businesses,” he said.
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