NAICOM to name and shame claims defaulters

Daniel

Chuks Udo Okonta

The National Insurance Commission (NAICOM) said it has reformed claims settlement processes and complaints redress mechanism to enable the public name and shame insurance operators who renege on their claims responsibilities.

Commissioner for Insurance Fola Daniel told Inspen that the commission has reinvigorated its complaints bureau with contact centre to enable Nigerians real time access in respect of complaints against insurance operators.

 He noted that the decision became necessary, because the commission recognises that all initiatives taken lately will not engender sufficient confidence needed to boast penetration, unless claims settlement and complaints redress mechanism are reformed.

He said the commission will soon embark on aggressive media campaign to give the public access to report organisations that failed to pay claims, adding that the public will be allowed to name those behind the organisations so that directors can call their managements to order.

It was gathered that the commission took the step because of the compliance that have greeted the no premium no cover policy which has enriched insurers lately.

Daniel urged operators to allow the benefits obtained from the new policy collection and remittance regime impact their claims settlement, staff remuneration and better returns on investment for shareholders.

 “The on-going implementation of the no premium, no cover rule has significantly improved the cash flow of insurance institutions. It is therefore expected that this would impact on our claim settlement ability, thus removing a major sore point in the relationship of insurance consumers and service providers. We expect this positive turn of events to enhance employee remuneration and better returns on investment for shareholders,” he said.

He called on insurers to develop the retail insurance market which has remained grossly untapped in Nigeria; considering the nation’s vast population, adding that the sector is currently embarking on several reforms geared towards developing the industry and improving the general perception of insurance.

He said the Commission incepted various reforms in the industry aimed at facilitating deeper market penetration and contribution to the nation’s Gross Domestic Product (GDP), stressing that the commission is glad to note that these efforts are beginning to yield positive results, but more needs to be done.

“It is the Commission’s believe that insurance professionals need to develop the retail insurance market which has remained grossly untapped in Nigeria; considering our vast population.

“The insurance sector is currently embarking on several reforms which include transition to IFRS, Risk Based Supervision, Market Conduct, Claims Settlement Reform; Financial Inclusion, all geared towards developing the Nigerian Insurance industry and improving the general perception of insurance. The industry is indeed in motion,” he said.