BusinessDay

Regulators say claims payment, ethical practice critical to insurance growth

The National Insurance Commission (NAICOM) and the Chartered Insurance Institute of Nigeria (CIIN) have listed claims settlement, ethical practice and professionalism as critical in taking the business into the future.

According to them, achieving the future sustainable growth in the industry requires that confidence and trust are built among insurance consumers and taking professionalism seriously.

Sunday Thomas, commissioner for Insurance, and Edwin Igbiti, president, CIIN spoke at the 2022 Insurance Professionals Forum held in Abeokuta, Ogun State with the theme ‘Power of the past: a force for the future of the insurance sector in Nigeria’.

Thomas described the theme as apt and relevant to the current efforts to enhance the performance of the insurance industry and diversify its productive base.

According to him, the commission is always proud to be identified with the various initiatives espoused at this annual forum because of its conviction that viable, qualitative, ethical, resilient insurance professionals hold the key to the sustainability and growth of the industry.

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Thomas said, “The integrity of insurance business depends solely on the level of integrity we display as professionals in the business. The image and future of insurance business in Nigeria depends majorly on how we uphold and encourage members to adhere strictly to the observance of the industry’s codes of conduct and ethics”.

Igbiti, in his remarks, said the insurance industry over the years and most especially, in the last two years, has operated in a volatile and an uncertain environment, and so has caused significant paradigm shifts in the way business is done.

“It is no longer business as usual for the industry as technological innovations, demanding customers, new competitors, and constantly evolving trends are driving the changes for the future.”

Against this background, Igbiti said no matter what technological advancement we adopt, if it does not translate to value for the customer, most of our efforts are in vain. Hence, there is a need to offer holistic value propositions, one cantered on the aspirations that really matter to consumers, including well-being, safety and reaching personal goals.

Thomas further stated that insurance practice in Nigeria in the past has had its good, bad and ugly moments, and of such bad and ugly moments that have had a significant impact on the image and perception of the industry is the issue of claims payment.

“We must not continue to harbour elements of destruction under our roofs. The issue of non-payment of genuine claims has always put the Commission and the entire industry on the defensive when it comes to discussing insurance in every stratum of the economy.”

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