NAICOM directs insurers to cover costs of all resolved claims

The National Insurance Commission (NAICOM) says insurance companies are now required to cover the costs of every claim it resolves.

Ebelechukwu Nwachukwu, head of the communication and stakeholders management sub-committee, spoke on Wednesday at the insurers’ committee meeting in Lagos.

Nwachukwu said NAICOM believes the decision would help reduce complaints from policyholders.

According to Nwachukwu, the decision aims to sanitise the insurance industry and also promote accountability among insurance companies.

She also said NAICOM commissioner had expressed concern over the high number of unresolved insurance claims, despite efforts to improve settlement processes.

“The NAICOM commissioner wants insurance companies to engage their brokers and customers to reduce outstanding claims,” she said.

Nwachukwu said the commission also urged insurance companies to develop and introduce cyber products in response to increasing digital risks.

She also noted that NAICOM is collaborating with the National Information Technology Development Agency (NITDA) and the Nigeria Data Protection Commission (NDPC) to advance the initiative.

Nwachukwu added that the regulator emphasised compliance with Nigeria’s Data Protection Regulations and urged practitioners to undergo training on data protection.

“Given the global digital transformation, NAICOM sees the need to develop cyber insurance products,” she said.

“Operators should begin engagements to roll out cyber insurance products.”  

Nwachukwu also said NAICOM remained committed to creating an enabling environment for insurance practitioners.

Also, the spokesperson said NAICOM was discussing ways to secure Nigeria’s aviation industry, given recent risks.

“NAICOM urges support for enforcing third-party motor insurance and seeks collaboration on its innovation lab,” she said.

On regulatory compliance, Nwachukwu encouraged practitioners to meet requirements and ensure credibility in filing financial statements and returns.

“The NAICOM commissioner spoke on solvency control, stressing that CEOs must educate boards on the required solvency levels for insurance companies,” she said.

Nwachukwu added that the current framework would be reviewed as it is based on existing capital requirements.