The Commissioner for Insurance, Mr Olusegun Omosehin, has pledged to take action against operators responsible for the failure of struggling insurance companies.
Last week in Lagos, Omosehin acknowledged the presence of distressed insurance companies within the industry.
He assured that the Nigerian National Insurance Commission (NAICOM) has always followed necessary procedures in handling these situations, with a focus on reviving affected companies to safeguard policyholders instead of shutting them down.
He vowed that the regulator would pursue managers who contributed to their failure. Demonstrating his administration’s commitment to ensuring prompt payment of legitimate claims by insurance companies to policyholders, he promised to blacklist and prohibit the negligent managers from holding positions in the insurance industry.
He stated that one of the primary objectives of his administration is to restore public confidence and trust in the insurance industry.
To address concerns and complaints regarding claims payments, Omosehin highlighted that the commission had established a Directorate for Market Conduct and Complaints Bureau.
He emphasized that market operators’ attitudes towards claims payments must change, asserting that NAICOM will not tolerate practices that unjustly deprive customers of their claims unless there is evidence of fraud.
According to him, the focus should shift from denying claims to seeking reasons to settle them. If there is a single valid reason for a claim to be paid, then it should be resolved.
Sometimes, the execution of a policy may not align precisely with its statement, but if any disputes arise not due to intentional acts, there should be a basis for honoring the claims.
He emphasized that the core function of insurance is to provide indemnity in the event of the unexpected and must be delivered when claims occur.
Regarding his three-month administration, he outlined five key strategies to reinvigorate the industry, which include protecting policyholders’ interests, strengthening internal regulatory capacity, ensuring operators fulfill their obligations, encouraging innovation, and enhancing market accessibility and penetration.
Discover more from Tension News
Subscribe to get the latest posts sent to your email.