Omosehin Warns Insurance Operators against Claims Payment Delays
Ebere Nwoji
The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, has warned insurance operators against unnecessary delays in the settlement of genuine claims, stressing that the National Insurance Commission(NAICOM) has zero tolerance to genuine claims delays.
Omosehin, speaking at the 2024 Insurance Directors’ Conference in Lagos emphasised the importance of addressing certain critical areas that were pivotal to the insurance sector’s expansion and safeguarding policyholders’ interests.
This year’s edition of the insurance sector directors’ conference has the theme, “Board Performance in the Nigerian Insurance Industry: A GRC Approach.”
While highlighting the steps taken by the commission to ensure prompt claim settlement, he called on all insurers to significantly reduce their outstanding claims by the end of this year.
He stated that the commission was committed to enforcing the law and taking action against any insurer failing to meet his claim obligations, underscoring the importance of financial stability and soundness of insurance institutions.
“The Commission’s primary focus is ensuring timely payment of genuine claims (payment of claims and timely too). We expect all insurers to significantly reduce their outstanding claims by the end of the year, as emphasised during the last Insurers Committee meeting. Unnecessary delays in the settlement of genuine claims will no longer be tolerated.
“As a Commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet his claim obligations. Simply put, if a company cannot honour legitimate claims, it has no place in our industry.
“The financial stability and soundness of our institutions are now more vital than ever. To remain relevant and competitive, our institutions must comply with all the relevant prudential regulations and requirements. We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so that ensuring adequate capitalisation is no longer optional. We must prioritise robust capitalisation to effectively tap into target markets and navigate current industry realities,” Omosehin stated.
