Insurance Companies To Face Sanction Over Non-Settlement Of Claims — NAICOM

The National Insurance Commission (NAICOM) has warned that more Insurance companies may be sanctioned for their inability to settle claims, in a bid to sanitise the Industry.

Non-settlement of claims has been a major challenge in the insurance Industry, and in June, the NAICOM revoked the licence of two ailing insurance firms, Niger Insurance Plc and Standard Alliance Insurance Plc after several palliatives to keep them alive failed to revive the companies.

The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, who disclosed the planned action at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, said the Commission is determined to rid the sector of underwriters who are not settling genuine claims.

He stated, “Recently two insurance companies’ licenses were withdrawn and these are; Niger Insurance and Standard Alliance Insurance. Though managing the death/failure of financial Institution is very demanding, nevertheless more may still be liquidated in order to sanitise the Insurance sectors.”

Abubakar, while speaking on the theme: “Post COVID-19 period where the Insurance industry will be and likely regulatory changes”, noted that the Commission has boosted its regulatory framework to ensure operators meet their obligations.

He said, “NAICOM has strengthened its regulatory oversight; Operators have to settle genuine claims within a reasonable time and discharge their obligations.

“Insurance regulation and supervision are always the bedrock of national economic development. I believed NAICOM reforms and regulatory initiatives will positively impact the insurance industry if achieved and that the Industry will witness tremendous development and growth. I urge you to remain complaints and support the Commission’s efforts.”

President/Chairman of Council, Chartered Insurance Institute of Nigeria (CIIN), Edwin Igbiti, pointed out that the seminar examines the national budget, reviews the thrusts of the fiscal and monetary policies of the government and estimates how these would influence the insurance industry in particular and the economy in general.

He said, “I am very optimistic that this second edition will be very insightful considering the challenges bedevilling the country such as; insecurity, high inflation rate, debts, oil subsidy as well as trending matters like the upcoming elections.”