NAICOM moves to sanction operators over claims payment

The National Insurance Commission (NAICOM) has called on Nigerians to report underwriting companies that fail to pay genuine claims to policyholders as and when due.

The Commissioner for Insurance, Sunday Thomas, in a paper delivered at training in Akwa Ibom State, said there is an urgent need to rewrite Nigerians’ poor perception about insurance to increase uptake of insurance products.

Thomas disclosed that the Commission is planning to start ranking insurance firms based on the number of claims filed and settled yearly.

The Commissioner lamented that though the industry was moving ahead in claims payments, the activities of some operators remained a task.

He said: “Claims payment has always been one aspect the industry has been battling with. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims even though activities of a few amongst the operators are jeopardising the efforts of the majority.

“We had before now, agreed to start ranking companies on the number of claims received and settled every year and we intend to make the ranking a public knowledge for the insurance consumers. It is always an issue that puts the entire industry on the edge.”

He explained that the Commission has been implementing various market developmental initiatives to lift the insurance sector to a global standard through risk-based supervision framework, digital capabilities and others.

Meanwhile, NAICOM has also projected the insurance industry’s gross premium income (GPI) to grow from N630 billion in 2021 to N6 trillion by 2030.

The projection is hinged on notable development initiatives already embarked upon by the regulator to stimulate the sector.

The Head, Corporate Communications and Market Development, NAICOM, Rasaaq Salami, while speaking at the seminar, said NAICOM would deepen the use of insurance as a strategic tool for stimulating growth in other facets of the economy and ultimately generate revenue for the government.