Stakeholders harp on prompt claims settlement

The stakeholders in the nation’s insurance industry have urged board of directors of insurance companies to give prompt claims settlement a priority in their policy making process.

Besides, they also want the directors to ensure the financial soundness and general wellbeing of their organisation by monitoring the management, to guarantee efficient deployment of human and capital resources in the overall benefit of all stakeholders.

These were the submission of the Acting Commissioner for Insurance, NAICOM, Sunday Thomas, during the 2nd Edition Insurance Director’s Conference, themed: “Corporate Governance: The Panacea for Sustainable Growth and Development of Insurance Business in Nigeria”, organised in collaboration with the College of Insurance and Financial Management (CIFM).

Sunday expressed optimism that the successful completion of the ongoing recapitalisation in the industry will simulate accumulation of long-term funds for infrastructural financing and improved Return on Investment (RoI).

He added that once the regulator and insurance companies can successfully navigate the racapitilisation corner, they could be on their way to entrenching a financially solid, vibrant, viable and active insurance market that would bring about not only an increase in penetration, but a substantial increase in the industry’s contribution to Gross Domestic Product (GDP).

He posited that the Commission shall continue to introduce new reforms and initiatives in the march towards achieving the full potential of the industry, stressing that the insurance sector in Nigeria, with a contribution to the nation’s GDP at less than one per cent has underperformed its potential especially when compared with other sectors in the financial services industry.

“In order to build capacity of the stakeholders, the commission resolved to conduct series of programmes for all its stakeholders.

“This engagement therefore, is one of such programmes earmarked by the commission to keep members of the board of directors abreast of the workings of the sector being one of its critical stakeholders,” he said.

Thomas maintained that in the last few years, the insurance industry has witnessed series of changes following reforms embarked upon by NAICOM.

According to him, these reforms include financial reporting standard, No Premium No Cover, Corporate Governance Code, Risk Based Supervision framework, Financial Inclusion, Claims Settlement, Market Conduct, Expansion of Distribution Channels, Recapitalisation and more, adding that all these initiatives are aimed at building confidence, trust and enhancing market value and profitability.

The observance of this role, he said has been lacking in some of the companies and which has contributed in no small measure to the challenges facing these companies today