The National Insurance Commission (NAICOM) has urged insurance companies to simplify their claims process, as a critical step towards rebuilding public trust in the industry.
NAICOM believes that making claims settlement process easier and efficient will enhance the industry reputation and better experience for consumers.
Ebelechukwu Nwachukwu, Chairperson, Sub-Publicity Committee of the Nigeria’s Insurers Committee, disclosed the position of NAICOM during a media chat after 17th Meeting held on Wednesday in Lagos.
She said NAICOM through the Commissioner for Insurance, Olusegun Omosehin, spoke firmly about rebuilding public trust and emphasised that at the heart of rebuilding that trust is claims settlement.
Quoting the Commission, she said, “For insurers, it should not just be about paying claims but really about the process of claims, making sure it’s less and less painful for the insured.”
She said NAICOM also encouraged insurers to clean the hard lines, noting that some aspects of claims documents that insurers requests for should be softened, as the industry pushes for public trust.
According to her, the Commission is committed and serious about creating an enabling environment for all insurance practitioners, while advising companies to support the ongoing enforcement of the third-party motor insurance with great engagement and publicity.
Read also: NAICOM gives life insurers 6-months to meet annuity guidelines or transfer portfolio
She noted that Commission also solicited the support of the insurers in its innovation lab project, and encouraged insurers to engage more to drive innovation in the industry.
She said the NAICOM Boss also mentioned ongoing conversations around aviation risks, noting that ongoing interactions between the Commission, the insurance industry, and those who lease aircraft to airlines will be successful, promising to keep the market updated.
“The regulator also spoke about the solvency control and regulatory framework, noting that it is necessary for CEOs to enlighten their boards about the levels of solvency insurance companies must have.
“The regulator is now measuring solvency on a quarterly basis, stating that the current framework will be reviewed after the Insurance Bill is passed, but that the framework currently used is based on the existing capital. When the capital increases, NAICOM will adjust the requirements accordingly.”
Other issues agreed at the meeting included that: “NAICOM will release guidelines on third party claims to raise public awareness, and that claims from third parties policies will be more visible going forward.”
The Commission also emphasised the importance of ensuring that complaints reach the CEO’s office to avoid regulator involvement, nothing that NAICOM would charge for “the time it spends on resolving complaints brought about companies that aught to be resolved by their CEOs
There was also request that insurers should train their agents to address miss-selling, as high turnover often leads to poorly trained agents who miss-sell insurance products.”
Having given insurance companies enough time to align with IFRS 17, which delayed compliance with returns for 2023, NAICOM is now set to enforce June 30 deadline compliance for 2024 returns, with no further extensions, the Commission warned.
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