The National Insurance Commission has issued a warning to insurers, stating that delays in the settlement of genuine insurance claims will no longer be tolerated.
This directive was delivered by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, at the 2024 Insurance Directors’ Conference held in Lagos on Wednesday.
The conference, themed “Board Performance in the Nigerian Insurance Industry: A GRC Approach,” brought together key players in the industry to discuss governance, risk management, and compliance.
Omosehin said that protecting policyholders’ interests and making sure that valid claims are paid on time continue to be NAICOM’s top priorities.
He restated the Commission’s insistence that insurers drastically cut down on unresolved claims by the end of the year.
Omosehin issued a warning, saying, “We will no longer tolerate needless delays in the settlement of legitimate claims. As a Commission, we are dedicated to upholding the law rigorously and acting quickly against any insurer who neglects their claim-related responsibilities. In other words, a business has no place in our sector if it is unable to fulfil reasonable demands.”
Omosehin further stressed the importance of financial stability in the insurance sector, urging institutions to comply with prudential regulations and prepare for the Risk-Based Capital regime.
He stated “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. We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so ensuring adequate capitalization is no longer optional. Robust capitalization is essential to effectively tap into target markets and navigate current industry realities.”
Omosehin noted that NAICOM has recently conducted examinations of its institutions using the Risk-Based Supervision Approach, which aims to enhance the resilience and sustainability of the sector.
“Our goal is to ensure sustainability, securing the long-term viability and future resilience of insurance entities. The insurance sector’s growth is essential to the overall health and resilience of our national economy,” he added.
He also advocated for the creation and execution of laws that encourage good governance, effective risk management, and compliance principles in order to safeguard stakeholders and secure the industry’s growth. The Commissioner finished by reiterating NAICOM’s unrelenting commitment to maintaining industry accountability and ensuring that insurers meet their duties to policy holders.
