The National Insurance Commission (NAICOM) has issued a directive calling on insurance companies to settle all outstanding claims by December 31, 2024, in a bid to strengthen the credibility and accountability of the sector.

This mandate was communicated by Mrs. Ebelechukwu Nwachukwu, Head of the Communications and Stakeholder Management Sub-Committee of the Insurers Committee, following a meeting held in Lagos.

At the meeting, which marked the first meeting of the Insurers Committee under the leadership of the new Insurance Commissioner, Mr. Segun Omosehin, NAICOM stressed the importance of maintaining good industry practices by prioritizing payment disasters.

According to Nwachukwu, who is also the managing director of Rex Insurance Ltd., the commissioner asked CEOs to ensure that no outstanding claims appear in their financial books by the end of 2024.

“The regulator has emphasized a targeted approach to verifying the accuracy of outstanding claims in insurers’ files,” she said.

Recapitalization of insurance companies

Along with efforts to secure claims settlement, NAICOM has advised insurance companies to consider recapitalization to improve their financial position.

“Insurers are encouraged to enter into discussions with their boards and shareholders regarding potential recapitalization needs, in order to remain prepared for regulatory requirements,” she said.

• Nwachukwu noted that the regulator has shared draft regulations on risk-based supervision (RBS) with operators as a guide.

• The commissioner also addressed compliance with the “no premium, no coverage” regulations, noting failings on the part of certain brokers.

• This regulation requires that insurance coverage is only granted after receipt of premium payments, with the aim of strengthening cash flow and overall market stability.

Focus on data protection

NAICOM also called on insurers to adhere to Nigeria’s data protection regulations to boost consumer confidence in the sector.

Furthermore, the Commissioner highlighted the importance of implementing the 10-year insurance strategic plan, which includes seven key objectives aimed at achieving the industry’s goals by 2027.

Nwachukwu said the commission’s directions reflect a unified vision for the growth of the sector, supported by a legal framework under the 2024 Insurance Bill.

“The bill prioritizes compliance with regulations and prudential guidelines, with the aim of eliminating corporate governance issues within the sector” she noted.

• The commissioner also encouraged insurance companies to consider investing in the National Credit Guarantee Scheme, recently approved by President Bola Tinubu.
• According to Nwachukwu, such investments could allow insurers to participate in governance decisions within the system, thereby strengthening their strategic influence.
• Progress on the NAICOM portal was another key topic, with the regulator announcing that resources were in place to ensure its continued effectiveness.

• The portal aims to streamline administrative processes, improving transparency and service delivery across the sector.

In line with its 10-year roadmap, NAICOM recently restructured its insurer committee subcommittees.

The new subcommittees focus on critical areas including insurance industry stability, communications and stakeholder management, technology and talent management, and customer service and business expansion. walk.

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