The National Insurance Commission (NAICOM) has set the end of April 2022 as the birth date to unveil Risk Based Capital. Before that date, the Commission has advised insurers to match expectations of RBS.
This was disclosed by the Commissioner of Insurance, Sunday Thomas at the the Insurance Committee meeting in Lagos. Speaking on what to expect, he said, “improved documentation in the insurance industry will ensure that whenever we commence the risk based supervision we will get result.”
As part of insurers preparation for RBS standard, insurers said they have concluded plans to add a ‘key fact’ page in policy documents to ensure simplicity and understanding of insurance products for the insuring public before purchase and provide unimpeded route to claims reporting, processing and payment.
Thomas also charged the insurers to comply with the directive to upload their policies into the NAICOM portal. At several meetings with the industry the Commission has raised concern over the disturbing number of laggards who steadily look away from uploading policies as they sold into the portal.
On the issue of unpaid claims, chairman sub-committee on publicity and communications, Insurers Committee and managing director, NSIA Insurance Limited, Mrs Ebelechukwu Nwachukwu cleared that insurers have resolved to curb reputational challenges and now have a duty to enlighten the insuring public on how to lodge a claim and how important documentation is in claims processing.
“We found out that most people dont read the policy documents and our sales people don’t tell you what is in there, you typically dont know what you have bought and what the exclusions are. That is where our reputational challenges are coming from, the subcommittee proposed on having a key fact page on the policy document,” she said.
On the increase in premium for third party motor Insurance policy, she said that discussions on the third party price and Ecowas brown card is still ongoing.
“We don’t have the final position on the price change yet but definitely that will soon be communicated. The commission had charged us to complete that process by the end of April. The NIA and NAICOM will inter phase so that can happen,” she said. This is against the backdrop of January 1 2022 as the initial date for commencement of new third party motor policy rate.
Nwachukwu added that the commission urged Insurers to ensure utmost usage of the portal and correct uploads. “The commission is trying not to use santions but to ensure that we use the portal for all our reporting,” she said.
