The National Insurance Commission (NAICOM), says the firm focus on market discipline has yielded improvements which has translated into some levels of transparency from operators by way of their attitude in claims and claims settlement in the market.
This endorsement came from the Commissioner for Insurance, Olusegun Omosehin, at a recent Media Interactive Session in Lagos. He said the insurers are paying and settling high ticket claims and they are not convalescing afterwards but demonstrating resilience.
Content CFI gave his clear assessment of claims paid last year, “A number of claims were settled last year. Last year was a test year for the insurance market in Nigeria. Let me put it this way, this market was tested. The market was tested extremely, intensely by way of claims settlement. At some point many people were expecting the market to crumble. But I am happy to say that even as regulator we are happy with the resilience we have seen. All major claims were paid within the time limit. We were very happy to have seen such level of resilience.”
NAICOM helmsman said what defined the market now pertaining to claims paid, “is essential for the credibility of the industry. There is no way we can be talking of an insurance sector when the core mandate of the sector which is to pay claims is not met.”
Speaking with the knowledge of a regulator that is witnessing a change Omosehin said, “You also realise that a number of long standing claims have been resolved; claims of five years, six years without payment are now being resolved. He said what is playing out is adoption of the Commission’ mantra, ‘simply find a reason to pay.’ Once it has been established that it is not a fraudulent claim, then find reason to settle.”
He said it’s not out of place that certain claims could be in the borderline, but that does not serve as an advantage not to admit liability. “Yes it might be a borderline case and you want to use all the technical arguments to throw it out. No, turn it round, use that technical argument to settle it. By that you build confidence in the sector.”
Corroborating the position of the Commission, the Chairman, Nigerian Insurers Association, Kunle Ahmed, at “Year 2026 Business Outlook, hosted by the Chartered Insurance Institute of Nigeria in February, said last year was indeed a test year of the resilience of the insurance market. “We had at least five major claims last year and underwriters paid.”
Not looking away from gray areas of claims contentions, Ahmed was bear, “There is room for improvement no doubt and we need to do that on a continuous basis.
NIA Chairman disclosed that the CFI recently discussed with him a claim that was being rejected by an insurer, a typical borderline case, where insurer insisted that because the car was not parked at the garage, it would not to pay for the theft. Ahmed said the response of the underwriter was unacceptable. “We are doing underwriting at the point of claims. You (the insurer) should have specified to the client that you must park your car in a garage and charge the appropriate premium for that. Don’t at the point of claim say ‘why did you not park the car at the garage. At the NIA we focused on our members doing the right thing.”
Featured Picture: L-R: Pastor Ikechukwu Udobi, President, Institute of Loss Adjusters of Nigeria ILAN; Ekerete Ola Gam-Ikon Deputy Commissioner for Insurance (Admin & Finance) Mrs. Ekeoma Ezeibe, President, Nigerian Council of Registered Insurance Brokers (NCRIB); Commissioner for Insurance, Olusegun Omosehin; President, Chartered Insurance Institute of Nigeria CIIN, Mrs Yetunde Ilori; Deputy Commissioner for Insurance (Technical) Dr Usman Jankara and, Chairman, Nigerian Insurers Association NIA, Kunle Ahmed at the recent 20th meeting of the Insurers Committee in Lagos.
