Lagos: The National Insurance Commission (NAICOM) has issued a directive requiring insurance companies to cover the costs of every claim they resolve. This announcement was made during the Insurers’ Committee Meeting held in Lagos on Wednesday.
According to News Agency of Nigeria, Mrs. Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-committee, stated that the initiative aims to sanitize the insurance industry. Nwachukwu, who is also the Managing Director of Rex Insurance Ltd., noted that the decision is expected to reduce the volume of complaints from policyholders and encourage greater accountability among insurers.
Mrs. Nwachukwu conveyed that the NAICOM commissioner expressed concern over the high number of unresolved insurance claims despite ongoing efforts to enhance settlement processes. The commissioner urged insurance companies to actively engage with their brokers and customers to address outstanding claims efficiently.
Further, the commission emphasized the importance of compliance with Nigeria’s Data Protection Regulations and advocated for practitioners to receive training in data protection. ‘Given the global digital transformation, NAICOM sees the need to develop cyber insurance products,’ Nwachukwu added, highlighting that the commission is collaborating with NITDA and the Nigeria Data Protection Agency to spearhead this initiative. Insurance operators are encouraged to start developing and introducing cyber insurance products to the market.
NAICOM remains committed to fostering an enabling environment for insurance practitioners and is actively discussing strategies to secure Nigeria’s aviation industry in light of recent risks. Additionally, the commission is advocating for the enforcement of third-party motor insurance and is seeking collaboration on its innovation lab.
On the topic of regulatory compliance, the NAICOM commissioner stressed the importance of meeting statutory requirements and ensuring credibility in financial reporting. Mrs. Nwachukwu also mentioned that CEOs must educate their boards on the necessary solvency levels for insurance companies, as the current framework, based on existing capital requirements, will be reviewed.