A reoccuring statement from the National Insurance Commission (NAICOM) since the present three top echelon Commissioners were appointed in 2024 has been commitment to policyholders protection. The emphasis on prompt claims payment has been constantly reloaded. Those claims that fall in grey areas of the cover, the Commission insists, should be paid. The Nigerian Insurance Association NIA immediate past Chairman, Kunle Ahmed upticks this dimension of grey area claims and joins NAICOM that such should be admitted and paid.
This issue of claims, consumer protection, and what phrase is employed, has been intertwined with virtually all statements streaming from the Commission, drawing the attention of operators to the direction the regulator wants insurers to focus on- obligation to claims payment. The bottomline is for the operators to find reason/s to pay even when such claims are in the border where the preference is to deny obligation.
A year ago, counting from the date President Bola Tinubu signed the Nigerian Insurance Industry Reform Act 2025, the 12 month stretch to recapitalise to prescribed capital limits got off the starting blocks and insurance and reinsurance companies had to race to the finish line set for 31 July 2026. The companies with proofs and proven to have successfully met minimum capital requirement were allowed to brace the tape, 43 of them including two reinsurance companies. What now looks like a staggered exercise has eight companies waiting for the Commission to ascertain their proofs in conjunction with verifying partners. After that they will then receive the nod to enter the list of operating insurance companies in the country bringing it to 51.
Tied to this higher capital level is a fixed regulator demand for insurers now in a new threshold of capital to still tie to their operations, improved ability to honour policyholders claims promptly.
The focus on claims obligations usually gets the first mention in the Commission’s emphasis, other expectations can follow after. It’s not unusual to reckon this pattern coming after consumer protection, as seen in the statement announcing the current 43. These expectations from insurers were mentioned after claims obligation:- absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.
Attached to the commitment to advance positive narrative about prompt claims payment is market development. Just the way NAICOM holds that claims that are undulating need to be admitted, it is also on a firm stand that market development would lead to penetration.
Holding straight up its commitment bundle, the regulator puts it thus; first, policyholders others follow – “The Commission reassures policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continue alongside the modernisation of Nigeria’s insurance ecosystem through innovation, technology, and digitisation, the Commission will continue to strengthen consumer protection, promote sound market conduct and accelate insurance penetration across the market.”
Now in the habit of lacing its statements commitment with dose of policyholders, stronger public confidence, or consumers, the Commission statement announcing the first batch of successful 43 was in that order. “Our unwavering commitment remains to build a fair, stable innovative, inclusive and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigeria economy.”
The revolving statement of obligation to pay claims resonates with AIICO Insurance Plc Managing Director, Mr. Babatunde Fajemirokun, highlighted this in a recent statement on the firms listing in the recapitalised companies and Q2 performance, He clears, “This milestone reflects our unwavering commitment to regulatory compliance, financial strength, sound corporate governance and long-term sustainability of our business. More importantly, it reinforces our capacity to underwrite risks of greater scale, honour claims obligations promptly, and continue protecting what matters most to our customers with confidence.”
Emphasising the firm’ high ranking by customers and what it took to earn it, Fajemirokun said, “The company also acknowledged the role of customer loyalty in sustaining its growth trajectory, noting that continued trust and engagement have been central to its performance in an increasingly competitive market.”
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