The Commissioner For Insurance, National Insurance Commission, NAICOM, Mr. Olusegun Ayo Omosehin has said there shall be no hiding place for insurers who fail to meet their claim obligations.

Omosehin said this during his remarks at the 2024 Insurance Directors Conference with the
Theme: “Board Performance In Nigerian Insurance Industry: A GRC Approach”, Wednesday in Lagos.

He said as a Commission which prioritizes enforcement of law and swift action against any insurers, disregard to settlement of claims or late settlement of claims will not be tolerated henceforth.

“The Commission’s primary focus is on ensuring timely payment of
genuine claims (payment of claims and timely too). We expect all
insurers to significantly reduce their outstanding claims by the end of the year, as emphasized during the last Insurers Committee meeting.

“Unnecessary delays in the settlement of genuine claims
will no longer be tolerated. As a Commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations. Simply put, if a company cannot honor legitimate claims, it has no place in our industry”.

Omosehin urged insurers to take seriously the issue of capitalisation which speaks of sound financial stability of the insurance institution.

“The financial stability and soundness of our institutions are now more vital than ever. To remain relevant and competitive, our
institutions must comply with all the relevant prudential regulations
and requirements.

“We must begin to prepare our various entities
well ahead of the Risk-Based Capital regime, so ensuring adequate capitalization is no longer optional. We must prioritize robust
capitalization to effectively tap into target markets and navigate
current industry realities.

He said the National Insurance Commission (NAICOM) is committed to aligning the insurance sector with the
President’s goal of growing the Nigerian economy to USD$1 trillion by 2030, by ensuring the right regulatory framework necessary to achieve meaningful contribution to the sector.

“To achieve this, the commission is committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector. De-risking a trillion-dollar economy takes more than mere rhetoric.

“To this end, we are fully committed to working with the National
Assembly in delivering the required legal and regulatory framework
which would flow from the successful passage of the 2024
Insurance Reform Bill,” he said.

He further outlined the 5 keys set by the Commission to deliver on its agenda:
 safeguard policyholders and improve confidence in the
insurance industry
 Strengthen our supervisory capabilities
 Improve safety and soundness of our institutions
 Foster Innovation and sustainability of the insurance industry
 Enhance overall insurance accessibility and penetration in
Nigeria.

The Commissioner for Insurance reiterated that collaborative efforts to embed these critical pillars across all stakeholders’ strategies will ultimately redefine the industry’s landscape and chart a clear path to success.