L-R: Mr. Kunle Ahmed, Chairman, NIA and Mrs. Bola Odukale, DG of NIA at the quarterly media briefing in Lagos yesterday.
The Nigerian Insurers Association (NIA) has defended the decision of the National Insurance Commission (NAICOM) to publish the names of insurance companies with outstanding claims in the market.
Mr. Kunle Ahmed, the Chairman of NIA said yesterday in Lagos that such action will promote transparency in the industry and encourage existing and potential policyholders to embrace insurance in Nigeria.
“By publishing the names of insurance companies with outstanding claims and the details of these complaints, NAICOM is promoting transparency and demonstrating commitment to protecting the interests of policyholders. It sends a strong message to insurers that the regulator is taking the issue of unpaid claims seriously and is willing to take concrete action to ensure that policyholders receive their due compensation as at when due.”
Ahmed said the hallmark of any insurance company worth its licence is the payment of claims, adding that despite the quantum of claims paid by the industry, there is still significant improvements to be made on the ease of making a claim and general improvement of the claims process. He said that is the only way to build public trust and ensure the sustainability of the sector.
“Whilst most companies will meet their claims obligations, it is believed that the threat of being publicly named and shamed, coupled with potential sanctions for non-compliance is a strong incentive for insurance companies to prioritise the settlement of outstanding claims and improve their claims-handling processes. NAICOM has explicitly stated its zero tolerance for delays in settling genuine claims and has warned that non-payment could even lead to the cancellation of licenses.”
The NIA boss said the regulator is also empowering policyholders to be more informed and to utilise official channels for resolving their grievances, a measure he said could help policyholders who may have felt helpless in the face of delayed or denied claims.
“The publications can also help to identify systemic issues within specific insurance companies or the industry as a whole that contributes to the high volume of outstanding claims. This allows NAICOM to develop targeted regulatory interventions to address these underlying problems.”
The NIA Chairman, however, noted that some insurers cited inaccuracies in the publication and lack of active engagement before the list was made public.
“They argued that some listed claims have already been paid or are subject to ongoing disputes or are even fraudulent. The insurance companies are therefore strongly advised to engage the regulator by providing updates on each complaint listed against them as this will enable NAICOM to update the list accordingly.”
Going forward, he said the NIA will soon invite Fintechs to make a pitch on different innovations that will ensure that the claims process is shortened, leading to improvement in the timely payment of claims in the industry.
