National Insurance Commission (NAICOM) has indicated that it will issue new directives to ensure strengthening of insurance underwriting to appropriately rate and charge requisite premiums coverage for strike, riot and civil commotion (SRCC) clauses.
Commissioner for Insurance, Mr Sunday Thomas, who said this at the weekend at the Chartered Insurance Institute of Nigeria (CIIN) 2020 Professionals’ Forum in Abeokuta posited said the move would ensure a guarantee of profitability and prompt settlement of claims without financial strain on the companies.
According to him, the recent outbreak of protests and civil unrest across the country and the resultant losses has exposed the vulnerability of government, businesses and individuals to unforeseen events.
He added that these incidents have further reinforced the value and necessity of the insurance industry.
“However, these incidents are likely to increase insurance claims, thereby exacerbating the already weakened liquidity and capability of insurance companies. This has reinforced the need for proper underwriting to ensure insurers are able to settle corresponding claims obligations to cushion the effect of losses on Nigerian households and businesses,” he said.
Thomas said it is pertinent to note that insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses, which were redundant in the past and which by competition are mostly offered free of charge must now be adequately rated as an important product for the survival of Nigerian businesses.
“The Commission will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies,” he posited.
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NAICOM to issue directives on protests