• Wednesday, February 21, 2024
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BusinessDay

‘Payment of claims critical for industry sustainability’

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The Nigerian Council of Registered Insurance Brokers (NCRIB) the umbrella body of brokers has called on the National Insurance Commission (NAICOM) to issue a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

Ayodapo Shoderu, its president, disclosed at the NCRIB members’ evening hosted by WAPIC Insurance Group, in Lagos. He noted that the directive has become necessary due to the importance of claims in insurance business.

He called on the regulator to be stringent in its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.

He said: “One of the areas of interest of our Council is the need for underwriters to always pay claims expeditiously. Whilst many underwriters are striving to adhere strictly to the time limits for claims payment to clients, some still do err in this regard.

“Considering the place claims payment in insurance image and acceptance, the council under my leadership has taken up the matter with NAICOM during my recent visit to the commission. We urged NAICOM to consider a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

“Since the sustenance of any insurance industry is its ability to pay claims promptly, our opinion is that commission should be more stringent on its stand or directive to insurers on claims payment, the same way the commission frowns at brokers with regards to remission of premium.”

He said the NCRIB and NAICOM will continue to collaborate in enforcing ethical practice in the industry, and urged operators to play according to rules.

Ashish Desai, acting managing director, WAPIC Insurance Group, said the company has been repositioned for improved performance. He called on all stakeholders to join hands together to enable the industry takes its rightful position in the scheme of things in the economy.