As part of living up to its mandate and also reinforce credibility within Nigeria’s insurance sector, the National Insurance Commission (NAICOM) has directed all insurance companies to settle outstanding claims by December 31, 2024.
This directive was announced by Mrs. Ebelechukwu Nwachukwu, head of the Communication and Stakeholders Management Sub-committee of the Insurers Committee, following their recent meeting in Lagos.
The meeting was the first to be held under the leadership of the new Commissioner for Insurance, Mr. Segun Omosehin.
Addressing industry leaders, Mr. Omosehin underscored the critical importance of prioritizing claim settlements to maintain public trust and uphold best practices.
“This move is necessary for strengthening the industry’s reputation and ensuring accountability,” said Nwachukwu, who also serves as Managing Director of Rex Insurance Ltd.
She highlighted that CEOs were instructed to eliminate any unresolved claims from their financial records before the year-end.
Industry analysts have welcomed NAICOM’s firm stance on outstanding claims. “This directive sends a clear message that regulatory oversight is intensifying, which should reassure policyholders and stakeholders of the industry’s commitment to financial integrity,” noted Bamidele Ojo, an insurance expert at Abuja-based consultancy firm InsureWise.
In addition to the claims settlement directive, NAICOM advised insurers to consider recapitalization to fortify their financial positions. This proactive measure would help companies meet potential future regulatory requirements and maintain stability in a competitive landscape.
Nwachukwu encouraged insurers to initiate discussions with their boards and shareholders on this topic to ensure readiness.
To support the industry’s adherence to high standards, NAICOM has circulated a draft of Risk-Based Supervision (RBS) regulations to guide insurers. The RBS approach aims to assess the overall risk profile of insurance companies, ensuring they align with prudent management practices.
