NAICOM to rank insurance companies on claims payments
The National Insurance Commission (NAICOM) has said going forward, insurance companies operating in Nigeria will be ranked based on their claims payment profile and the rankings will be published publicly. The Commission said this is to entrench claims payment in the industry and expose firms not paying claims. Claims default has been a major challenge […]
The National Insurance Commission (NAICOM)
The National Insurance Commission (NAICOM) has said going forward, insurance companies operating in Nigeria will be ranked based on their claims payment profile and the rankings will be published publicly.
The Commission said this is to entrench claims payment in the industry and expose firms not paying claims.
Claims default has been a major challenge in the industry and NAICOM had in the recent past punished claims defaulters.
In an address released to the participants of the 2022 NAICOM retreat for financial journalists, the Commissioner for Insurance/CEO NAICOM, Mr Sunday O. Thomas said stakeholders had agreed “To start ranking companies on the number of claims received and settled on an annual basis and we intend to publish such ranking for the insurance consumers. It is always an issue that puts the entire industry on the edge. The Commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector.
“Claims payment has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though activities of few amongst the operators is jeopardising the efforts of the majority.” The commissioner explained further.
On efforts to make insurance more accessible and affordable, he said the Commission will soon be unveiling the Commission’s sandbox to give room for innovative expansion of insurance reach out.
“As you can see so far, the Commission is focusing on using technology to boost access to insurance as that seems the way to go under the prevailing circumstance,” he explained.