NAICOM’s Regulatory Priority Shifts to Claims Settlement
Regulatory priority of the National Insurance Commission (NAICOM) has now shifted to claims settlement in the insurance industry.
Mr Sunday Thomas, the Commissioner for Insurance and Chief Executive Officer of NAICOM has said, just as he noted that the commission will soon begin ranking insurance firms based on the number of claims received and settled annually and will be published.
The NAICOM boss who was speaking at the 2022 Retreat organized for Journalists in Uyo, Akwa Ibom, State , lamented that though the industry was progressing in huge claims payments, the activities of some of the operators remained a task.
‘Claims payment has always been one aspect the industry is battling to balance.
‘We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though activities of few amongst the operators is jeopardising the efforts of the majority.
‘We had before now agreed to start ranking companies on the number of claims received and settled on an annual basis and we intend to publish such ranking for the insurance consumers. ‘It is always an issue that puts the entire industry on the edge”, he said.
‘The Commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector,’ he stated.
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; Encourage investment in digital capabilities and automation like launching of NAICOM portal, the launch of the Bimalab Project on the 9th of February, 2021; Enforcement of the compulsory insurance products in Nigeria – via a partnership with agencies and states, among others.
Meanwhile, NAICOM, has projected the insurance industry Gross Premium Income (GPI) to grow from N630 billion in 2021 to N6 trillion by 2030.
The growth is hinged on notable development initiatives already embarked upon by the regulator to stimulate growth in the sector.
The Head, Corporate Communications & Market Development, NAICOM, ‘Rasaaq ‘Salami, while speaking on his paper entitled: ‘NAICOM’s Market Development Initiatives: The Journey so Far’, which he delivered 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 funds for the government for project development at the Federal and State levels.
He further explained that various actions to expand the reach or tap into a different segment/unexplored market (Retail end) and, other activities aimed at achieving insurance market development, were in place.
Meanwhile, the National Insurance Commission (NAICOM) has said it will commence the ranking and rating of insurance companies in line with the number of claims received and settled on an annual basis, Mr Thomas said at the event.
The commission would also publish such ranking for the insurance consumers. He said that although claims payment was an issue in the industry, the commission he added was doing all it could to bring non-settlement of claims was brought to its barest minimum.
According to him, the commission is trying to open up the market across the geo-political zones by reaching out to the states where insurance penetration is perceived to be very low. “We expect the industry to respond to these efforts by bridging the supply gap and ensure they follow up on the commission’s move to create awareness among high ranking policy makers.
“This is to prove that the industry is ready for the booming opportunities awaiting them across the country. “Let me inform you that the commission will soon be unveiling its sandbox to give room for innovative expansion of insurance reach out. “The web aggregators’ guideline is also aimed at opening access to insurance and also a means of creating a convenient market for insurance. “We can gladly say that the Nigerian Insurance market has undergone substantial structural and regulatory reforms over the years following the market development initiatives being implemented,” he said.
Thomas added that the theme of the retreat, ‘ Improving Insurance Access through Market Development and Innovation in 2022 and Beyond,’ was to consolidate on his administration’s agenda of developing the market and deepening penetration.
