NAICOM Orders Insurance Firms to Publish Outstanding Claims

In a calculated move towards promoting transparency and growth in the insurance sector, the National Insurance Commission (NAICOM) has mandated all insurance companies to immediately publish, in details, all outstanding claims in their books.q

It also directed the insurance firms to advise those who have unpaid claims to come forward with requisite documents to get settled.

Mr Olorundare Thomas, the Commissioner for Insurance and Chief Executive Officer of NAICOM, stated these on Thursday at a cocktail heralding the 2023 NAICOM Conference for Insurance Journalists in Uyo, Akwa Ibom State.

According to him, the Commission was totally uncomfortable with companies foot-dragging on prompt claims settlement, assuring that strategic steps would be taken as a regulator to ensure efficiency on the part of the insurance companies.

He warned companies detaining funds for the settlement of claims to turn a new leaf or face unpalatable consequences, including naming and shaming, as the matter is not what should be toyed with.

Thomas said that NAICOM formally wrote the operators to galvanise and give them ample time to sort out issues around outstanding claims and publish such activities in national dailies for public’s attention and necessary action.

He said: “We’re doing a lot trying to alert firms to be alive to their responsibilities. Soon, insurance firms will publish in national dailies that those who have claims should come forward with relevant documents to process their claims.

“Many of the insured do not have requisite documents. However, some companies who have completed documentation are not settling their claims. But we are ensuring they do pay as and when due.

“I have had to call some of the insurance companies to do the right thing and I don’t like to do that. There shall be consequences for those not paying claims promptly.

Thomas advised the public to quickly revalue their assets due to the surging inflation in order to insulate them from depreciation in value as inflation monster rages fiercer.

He described insurance as an excellent security cover on assets, adding that cost of replacing uninsured assets had reached stratospheric heights, which is almost impossible for companies, agencies and individuals to accommodate given the prevailing scathing economic climate.

The NAICOM CEO also revealed that plans were afoot to unveil a strategic plan for the insurance sector in October during a national conference.

He said the document was like a compass for the insurance industry that will highlight how this year would end.