NAICOM gives insurers December 31 deadline to settle outstanding claims

The National  Insurance Commission (NAICOM) has given insurance companies a December 31, 2024 deadline to clear all outstanding claims.

This was disclosed by Mrs. Ebelechukwu Nwachukwu,

Managing Director of Rex Insurance Limited, and the Head, Communication & Stakeholders Management Sub-committee at a press conference held after the Insurers’ Committee management meeting in Lagos.

The meeting marked the first gathering of the Insurers Committee with SegunOmosehin as the Commissioner for Insurance (CFI).

She informed that the Commissioner for Insurance/Chief Executive Officer of NAICOM, Olusegun Omosehin, charged insurance executives at the event to ensure that no outstanding claims is captured in their 2024 financial accounts.

According to her, the Commissioner also tasked the executives to defend the insurance industry through payment of genuine claims.

Mrs. Nwachukwu pointed out that the CFI also tasked insurers to pay specific attention to the implementation of the 10-year roadmap for the Insurance Strategic Plan.

She added that the Commissioner for Insurance (CFI) charged the insurance companies’ executives to defend the industry through payment of genuine claims, which is integral.

“The regulator said it would be checking in an intensive and focused manner the outstanding claims in the insurer’s books.

“The Commission said its focus is on the soundness of the insurance industry, measured by the ability to meet their obligations when due,” Mrs. Nwachukwu said.

She said the CFI also charged the insurance companies to take steps towards recapitalisation by evaluating their financial position regarding the need to raise fresh capital.

According to her, the charge came from the regulator, having exposed a draft of the Risk-Based Supervision (RBS) regulations to the operators, adding that the CFI further encouraged brokers to ensure strict compliance with the “no premium, no cover” regulation, having observed some violations in the past.

Also, she said the NAICOM encouraged the insurers to protect data and submit their companies’ financial statements on time to create more confidence in the industry.

Mrs. Nwachukwu stated that the CFI charged the insurance operators to pay attention to the legal and regulatory framework for the industry under the Insurance Bill 2024.

“He spoke about focusing on compliance issues under the prudential guidelines released by NAICOM to the insurers and putting an end to corporate governance abuses recognised within the industry,” she said.

Furthermore, she said the regulator insisted that insurers get the proper approval from NAICOM before the newly appointed executive director of insurance companies assumes their appointment.

She named the reconstituted sub-committees as, Insurance Sector Stability; Communication & Stakeholders Management; Technology & Talent Management, and Customer Service & Market Expansions.

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