Insurance Companies owe over N40b Unpaid Claims-NAICOM

The National Insurance Commission (NAICOM) has said it will deploy all measures necessary to compel erring insurance companies to pay outstanding claims amounting to over N40b.

Commissioner for Insurance, Sunday Thomas, speaking at the 2020 insurance directors’ conference organised by NAICOM and the College of Insurance and Financial Management (CIFM) yesterday in Lagos, said that the move is part of measures to reposition and strengthen the industry.

The Commissioner urged underwriters to pay attention to claims payment, especially now that the industry is fighting negative public perception. Thomas called on insurers to be responsive to the plight of their clients by prompt settlement of claims, and equally charged them to strengthen their human and financial capital for effective participation in big ticket risks.

According to him, “the era of huge backlog of claims should no longer be associated with our companies, and while the commission is profiling companies with huge unsettled claims for necessary regulatory action, companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct.

“Our focus must shift to service delivery which will make our companies to seek more reasons to settle clients’ claims and less reason for repudiation of claims.”

He added that “It has been observed that the gains of domestication policy of the government as enshrined in the Nigeria Content Development Act 2010 are gradually losing its meaning for the insurance sector.”

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