The National Insurance Commission (NAICOM) has urged underwriting firms in the country to pay all outstanding claims owned to policyholders before December 31, 2025, to avoid regulatory sanction.

Head of the Communication and Stakeholders Management Sub-Committee of the Insurers’ Committee, Ebelechukwu Nwachukwu, said this after the Insurers’ Committee meeting, in Lagos.

Nwachukwu said NAICOM has advised insurance companies to ensure that no outstanding claims are captured at the close of their 2024 financial accounts. She said the NAICOM boss tasked the insurance companies’ executives with defending the industry through the payment of genuine claims, which is integral to growth.

“The regulator said it would be checking the outstanding claims in the insurer’s books in an intensive and focused manner.“The commission said its focus is on the soundness of the insurance industry, measured by the ability to meet their obligations when due,” she said.

According to her, NAICOM also charged the insurance companies to take steps towards recapitalisation by evaluating their financial positions regarding the need to raise fresh capital.

She said the charge came from the regulator, having exposed a draft of the Risk-Based Supervision (RBS), that will take effect if recapitalisation takes off.
Nwachukwu revealed that the commission further encouraged brokers to ensure strict compliance with the “no premium, no cover” regulation, having observed some violations of the regulation.

She also stated that the regulator encouraged insurance operators to protect data and submit their companies’ financial statements early enough to raise the confidence level.

Also speaking at the meeting, the Head of Corporate Communication, NAICOM, Abba Khaleel, said the commission is focusing on compliance issues under the prudential guidelines released by NAICOM to the insurers. This, he said, would put an end to corporate governance abuses.