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NAICOM sets Dec 31 deadline for insurance companies to clear outstanding claims

November 8, 2024 10:47 am

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The National Insurance Commission (NAICOM) has directed all insurance companies to clear outstanding claims by December 31, 2024.

According to NAN, Ebelechukwu Nwachukwu, the head of communication and stakeholders management sub-committee of the insurance committee, spoke on the outcome of a meeting held on Thursday in Lagos.

The 16th insurers committee meeting was the first under Segun Omosehin, the new NAICOM commissioner, appointed on April 19 by President Bola Tinubu.

Nwachukwu, who doubles as the CEO of Rex Insurance, said the commission would thoroughly monitor insurers’ outstanding claims.

“The commission said its focus is on the soundness of the insurance industry, measured by the ability to meet their obligations when due,” she said.

She urged companies to discuss recapitalisation with their boards to prepare for future capital requirements.

“If there will be need to raise capital, insurance companies need to start speaking with their different boards, shareholders about the possibility of recapitalisation happening, before it becomes a regulation,” Nwachukwu said.

Nwachukwu said the commission encouraged brokers to enforce strict compliance with the “no premium, no cover” regulation, emphasising the role of the CEOs of insurance firms in resolving complaints.

Regarding Nigeria’s data protection, she said Omosehin instructed insurers to focus on industry regulations and the legal framework under the Insurance Bill 2024.

She said the NAICOM commissioner wants operators to focus on implementing the 10-year strategic insurance plan to achieve industry objectives by 2027.

“He spoke about focusing on compliance issues, under the Prudential Guidelines released by NAICOM to the insurers and put an end to corporate Governance abuses, recognised within the industry,” Nwachukwu said.

“The commissioner discussed the National Credit Guarantee Scheme signed by President Bola Tinubu.

“If insurers invest in the scheme, we have the potential of sitting on the board of the facility, where a lot of decisions would be taken.”

According to her, NAICOM requires insurers to obtain approval before appointing any new executive director in insurance companies.

Nwachukwu said the insurers’ committee has restructured its sub-committees to align with the pillars of the 10-year roadmap, creating the insurance sector stability committee, communication and stakeholders management committee, technology and talent management committee, and customer service and market expansion committee.