The National Insurance Commission NAICOM in well calibrated remark at the 2024 Insurance Directors’ Conference stated that the industry performance in governance, risk and compliance (GCR) principles needs urgent reassessment and same applies to claims where delay payment persists.
Commissioner for Insurance Olusegun Omosehin who brought this to the fore today at the event in Lagos said, “as a regulator, we believe that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture.”
Omosehin cleared, “In today’s global business landscape, integrating GRC at the Board level is vital for business success and sustainability. It is no longer optional, but an essential ingredient for enhancing decision making, transparency, accountability and risk management. Effective GRC ensures that Boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance.”
He emphasised that the theme for this year’s conference “Board Performance in the Nigerian Insurance Industry: A GCR Approach” should indeed make GCR the hallmark of performance for the operators.
The CFI said as much as the five key agenda of the Commission remains its beacon, ensuring timely payment of genuine claims “will ultimately redefine the industry’s landscape and chart a clear path to success.” Besides, he said addressing certain critical areas are pivotal to the insurance sector’s expansion and safeguarding policyholders interests.
He made it clear that the “Commission’s primary focus is on ensuring timely payment of genuine claims (payment of claims and timely too). We expect all insurers to significantly reduce their outstanding claims by the end of the year, as emphasized during the last Insurers Committee meeting. Unnecessary delays in the settlement of genuine claims will no longer be tolerated.”
Reiterating that NAICOM position on delay claims stands, he said, “As a Commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations. Simply put, if a company cannot honor legitimate claims, it has no place in our industry.”
