The insurance industry regulator, the National Insurance Commission(NAICOM) is set to sanction underwriting firms owing insurance clients huge unpaid claims, it was learnt.
The industry is currently owing over N40 billion in unpaid claims, according to market analysts.
To this end, the regulatory body is currently compiling the list of insurance firms that are yet to pay their huge unpaid claims with the motive to sanction the erring firms.
Speaking at the 2020 insurance directors’ conference, organised by NAICOM and the College of Insurance & Financial Management (CIFM) in Lagos, yesterday, the commissioner for Insurance, Sunday Thomas, noted that, underwriters must pay utmost attention to payment of claims, especially, at a time the industry is nursing negative public perception.
While calling insurers to be responsive to the plight of their clients in prompt settlement of claims, he equally charged operators to strengthen their human and financial capital for effective participation in big ticket risks.
To him, it has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector.
“More businesses especially in the oil and gas and the Aviation sectors are now been re insured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas where the industry can impose itself on the economy through the control of funds for national development,” he pointed out.
Saying the industry must invest handsomely in technology, he said, institutions should be prepared to digitise their processes, procedures and systems in order to make their operations seamless and real time.
“The commission is investing heavily in automating its processes and expects nothing less from the insurance institutions. An industry Information Technology Guideline has been issued for the operators and the Commission requires your support and cooperation for effective compliance,” he said.