…lists benchmarks
The soundness of the insurance industry is a priority for the National Insurance Commission (NAICOM), the regulatory body responsible for overseeing the insurance sector in Nigeria.
NAICOM believes that ensuring the financial stability and strength of insurance companies is essential for protecting policyholders, promoting investor confidence, and contributing to the broader economy.
These were concerns and benchmark statements at the 16th Meeting of the Insurers Committee of the industry held in Lagos.
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It was also the first meeting of Segun Omosehin, the commissioner for Insurance/CEO, NAICOM under the umbrella of Insurers Committee since his assumption of office in April 2024.
Ebelechukwu Nwachukwu, chairman, Sub-Publicity Committee of the Insurers Committee speaking on outcome of the meeting, said “NAICOM is focused on soundness of the insurance entities and this is measured by ability of the companies to meet their obligations as at when due.
“NAICOM is very clear on the insurance industry they want to see and has put in a lot of resources on the plan we all agreed, which is the Insurance Industry Reform Plan that has the 7-trust strategies, Nwachukwu said.
According to her, NAICOM want insurers to pay attention on the 10-year Insurance Industry Road Map. The industry had agreed on 7-Trust strategies that we must commit to, to enable the insurance industry achieve its objectives by 2027.
She said to achieve the set objectives, NAICOM has reconstituted sub-committees of the Insurers Committe in line with the pillars of the 10-year roadmap for the insurance industry.
They are Insurance Sector Stability; Communication and Stakeholders Management; Technology and Talent Management; as well as Customer Service and Market Expansion.
“NAICOM wants us to pay specific attention to the legal and regulatory framework under the insurance industry regulatory Bill 2024, to which the draft has been exposed to operators.
He encouraged companies to begin to take steps towards recapitalisation, because most companies now know their state and capacity, after the regulator has exposed the report on the risk based capital evaluation.
“It is important for us as insurance companies to begin to evaluate our status and begin to talk to our different Boards and Shareholders for their buy-in, ahead of any regulatory pronouncement.”
Nwachukwu said the Commission spoke of the need to collectively begin to defend the insurance industry, stating that claims payment is an integral part of defending the integrity of the industry.
“The commissioner spoke to us on focusing on compliance issues as contained in the industry’s prudential guideline, warning insurers to put an end to corporate governance abuses that are seen across the industry.
According to her, NAICOM informed about the progress they have made with regard to the Agency Portal, assuring that all resources are in place to ensure efficiency of the portal.
The Commission also encouraged insurance companies to take seriously the new National Credit Guarantee Scheme of the Federal Government, urging that they should to take active part in investing and implementation of the scheme.
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He spoke about the consumer complaints, noting that NAICOM receives complaints that ought to be handled by companies without the regulator knowing about it.
In this vein, NAICOM want insurance CEO’s to get involved in insurance compliant matters, strengthen their internal control units for easy resolution of such issues.
“He believes that if CEO get involved, some issues that come to the commission could be resolved.”
NAICOM also pointed out on early submission of financial statements by insurance companies, noting that where you do not submit early, it is a signal to the regulator that there are issues with your organisation.
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