NAICOM Sets Dec. 31 Deadline for Insurers to Settle Claims
The National Insurance Commission (NAICOM) has issued a directive for insurance companies to settle all outstanding claims by December 31. Mrs. Ebelechukwu Nwachukwu, Head of Communication and Stakeholders Management Sub-committee of the Insurers Committee, shared this update following a committee meeting in Lagos, which marked the first with Mr. Segun Omosehin as the Commissioner for Insurance.
Nwachukwu, who is also the Managing Director of Rex Insurance Ltd., stated that Omosehin urged the Chief Executives of insurance firms to ensure that no unpaid claims remain in their books by the close of their 2024 financial accounts. “The regulator emphasised that it will be closely monitoring outstanding claims within insurers’ records,” she noted. “Our industry’s strength lies in our ability to meet obligations promptly,” she added.
The commissioner further instructed companies to prepare for potential recapitalisation, advising them to assess their financial stability. “If capital increases are needed, firms should consult their boards and shareholders proactively, as the commission is preparing to implement Risk-Based Supervision (RBS) regulations,” Nwachukwu explained.
Additionally, Omosehin reiterated the “no premium, no cover” policy and urged insurers to comply fully, while also addressing customer complaints effectively. He also highlighted the importance of adhering to the Nigeria Data Protection regulations and stressed early submission of financial statements to build confidence in the sector.
Omosehin also encouraged insurers to align with NAICOM’s 10-year Insurance Strategic Plan, which focuses on the industry’s growth and is structured to meet specific objectives by 2027. The Insurance Bill 2024, the legal framework for the industry, was also discussed, alongside the Prudential Guidelines issued by NAICOM to enforce corporate governance standards.
In another development, Omosehin discussed the National Credit Guarantee Scheme recently signed by President Bola Tinubu. He mentioned that by investing in this scheme, insurers could gain significant decision-making influence on the board overseeing the facility.
The commissioner also updated stakeholders on NAICOM’s agency portal, affirming its continued efficiency and improved resource allocation. He stressed that insurers must secure NAICOM’s approval before new Executive Directors assume their roles to uphold industry governance standards.
Nwachukwu noted that the Insurers Committee also reconstituted its sub-committees to align with the 10-year roadmap, creating focused teams on Insurance Sector Stability, Communication and Stakeholders Management, Technology and Talent Management, and Customer Service and Market Expansion.