Worried by the activities of a few unscrupulous insurance companies that refused to settle genuine claims, thereby jeopardising efforts of the majority of firms that pay promptly, the National Insurance Commission (NAICOM) has concluded plans to publish a list of ranked insurers based on the number of claims received and settled on an annual basis.
The moves aim at alerting insurance consumers on the development in the sector, and to possibly serve as a guide against falling prey to insurers who deliberately refuse to honour claims’ settlement.
Also, the NAICOM is focusing on using technology to boost access to insurance as that seems the way to go under the prevailing circumstance, and by so doing, taking insurance to where the other financial sectors are or even surpass that mark.
This development was disclosed by the Commissioner for Insurance, Mr Olorundare Sunday Thomas over the weekend at the retreat for financial journalists.
He said “Claims payment has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though activities of few amongst the operators is jeopardising the efforts of the majority.
“We had before now agreed to start ranking companies on the number of claims received and settled on an annual basis and we intend to publish such ranking for the insurance consumers.
“It is always an issue that put the entire industry on the edge. The Commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector”.
The NAICOM boss informed that the theme for this year’s retreat “Improving Insurance Access through Market Development and Innovation in 2022 and beyond” is especially couched to consolidate on his administration’s cardinal agenda of developing the market and deepening penetration.
On the use of technology to deepen insurance penetration, Mr. Thomas stated, “As you can see so far, the Commission is focusing on using technology to boost access to insurance as that seems the way to go under the prevailing circumstance. We are exploring ways to take insurance to where the other financial sectors are or even surpass that mark.
“Financial transactions are more of a one-stop-shop for everything and are either we key in or we lose the business to more innovative outlets that will seize it from us’.
He pointed out that the Commission’s efforts in developing the market are an all-inclusive one, from the creation of avenues to deepen insurance penetration to increasing access to insurance products via digital platforms and increasing visibility of insurance across the nooks and crannies of the country.
According to Mr Thomas, the Commission recently partnered with Financial Sector Deepening Africa, FSD Africa to launch the Bimalab Nigeria, a programme aimed at accelerating the insurtech innovation.
He informed that the NAICOM will soon unveil the Commission’s sandbox to give room for innovative expansion of insurance reach out, noting that the web aggregators’ guideline also aimed at opening access to insurance as well as being a means of creating a convenient market for insurance.
The Commissioner for Insurance explained that the collective efforts at ensuring the development and growth of the insurance sector will definitely translate to the growth and development of Nigeria’s economy.
In this regard, he said the Commission has been implementing various market developmental initiatives to lift the insurance sector to a global standard through:
“Risk-Based Supervision Framework. Encourage investment in digital capabilities and automation – e.g. launching of NAICOM Portal, the launch of the Bimalab Project on the 9th of February, 2021. Enforcement of the compulsory insurance products in Nigeria – via a partnership with agencies and states. Capacity development programmes – Actuarial, competency framework etc. Sensitisation of various stakeholders – MSMEs on benefits of insurance, MDAs Insurance Desk Officers etc. Introduction of regulatory reforms and policies e.g issuance of web aggregators’ guidelines”.
He affirmed that the Nigerian Insurance market has undergone substantial structural and regulatory reforms over the years following the market development initiatives being implemented and the evolution of Nigeria’s financial sector in the last decade which has been characterised by digital transformation.
The Commission, he reiterated, is trying to open up the market across the geo-political zones by reaching out to the states where insurance penetration is perceived to be very low.
“We expect the industry to respond to these efforts by bridging the supply gap and ensure they follow up on the Commission’s move to create awareness among high ranking policymakers in order to prove that the industry is ready for the booming opportunities awaiting them across the country.
“The importance of insurance post-COVID-19 and the aftermath of EndSARS protest cannot be overemphasised hence, the marginal increase in the uptake of policies boosting the retail market and the annuity component,” Mr Thomas further stated.
According to him, the recently released industry statistics has shown some growth in the sector, as the Nigerian Bureau of Statistics figures have shown that the sector has recorded a positive increase in almost all parameters and has rated the sector as one of the fastest-growing sectors in activities.
“Even though we are climbing the ladder, we all know that there is a need for us to do much better as our potentials are huge,” Mr Thomas stressed.
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