The National Insurance Commission (NAICOM) says it is profiling insurance companies with huge unsettled claims for necessary regulatory actions.
The Commissioner for Insurance, Sunday Thomas, said this at the 2020 Insurance Directors’ conference jointly organised by NAICOM and the College of Insurance and Financial Management (CIFM) in Lagos.
While noting that companies are responsible to their clients, he warned that the era of a huge backlog of claims was over. Commenting on the appropriateness of the theme of the conference, ‘Insurance Industry Post Pandemic: The Pursuit for Survival and Growth’, Thomas charged operators to strengthen their human and financial capital for effective participation in big-ticket risks.
He said: “More businesses especially in the oil and gas as well as aviation sectors are now being re-insured abroad. Of more concern is the declining participation of life assurance companies in the annuity business, which is the emerging segment.
These are the areas where the industry can contribute much to the economy through the control of funds for national development.
“The industry must invest handsomely in technology, which is a key driver of the market. The Institutions should be prepared to digitalise their processes, procedures and systems in order to make their operations seamless and real-time.”
According to him, the Commission is investing heavily in automating its processes and expects nothing less from the insurance institutions. “An industry information technology guideline has been issued for the operators and the Commission requires support and cooperation for effective compliance,” Thomas said.