NAICOM warns insurers against delay in claims settlement

The National Insurance Commission (NAICOM) has urged the boards of insurance companies to give prompt claims settlement a priority in their policy-making process.

Besides, the commission warned insurance operators in the country that delays in settling claims would no longer be tolerated.The regulator explained that this has become necessary to restore confidence in the industry and position the sector on a sustainable growth path for increased contribution to the economy.

However, it called on insurance institution directors to ensure their organisation’s financial soundness and general well-being by monitoring the management to guarantee efficient deployment of human and capital resources for the overall benefit of all stakeholders.

These form parts of the submission, the Commissioner for Insurance, Segun Omosehin, at the 2024 Insurance Directors Conference organised by the College of Insurance and Financial Management (CIFM), with the theme: ‘Board Performance in the Nigerian Insurance Industry: A Governance, Risk and Compliance (GRC) Approach’.

The commissioner expressed optimism that by the time the Insurance Industry Reform Bill 2024, which has scaled a second reading at the Senate becomes a law, it will stimulate the accumulation of long-term funds for infrastructure financing and improved return on investment (RoI).

He added that once the regulator and underwriting firms successfully navigate the recapitalisation, they would be on their way to entrenching a solid, vibrant, viable and active insurance market.