The National Insurance Commission (NAICOM) said it is profiling insurance companies with huge unsettled claims for necessary regulatory action.
The Commissioner for Insurance, Mr. Sunday Thomas, said this at the 2020 insurance directors’ conference jointly organised by NAICOM and the College of Insurance & Financial Management (CIFM) in Lagos today.
While noting that the companies that are responsive to the plight of their clients in prompt settlement of claims are encouraged to sustain the good business conduct, he warned that the era of huge backlog of claims should no longer be associated with insurance companies.
Commenting on the appropriateness of theme of the conference, “Insurance Industry Post Pandemic: The Pursuit for Survival and Growth” Thomas charged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks, noting that it has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector.
According to him, “More businesses especially in the oil and gas and the Aviation sectors are now being re insured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development.
“The Industry must invest handsomely in technology, one of our key drivers for developing the market.
The Institutions should be prepared to digitalise their processes, procedures and systems in order to make their operations seamless and real time.
The Commission is investing heavily in automating its processes and expects nothing less from the insurance institutions.
An industry Information Technology Guideline has been issued for the operators and the Commission requires your support and cooperation for effective compliance,” he said.
