National Insurance Commission (NAICOM) has given insurance companies a December 31, 2024 deadline to clear all outstanding genuine claims.

This was disclosed by Mrs. Ebelechukwu Nwachukwu, Managing Director of Rex Insurance Limited, who doubles as the Head, Communication & Stakeholders Management Sub-committee at a press conference held after the Insurers’ Committee management meeting in Lagos recently.

The meeting marked the first gathering of the Insurers Committee with Mr. Olusegun Omosehin as the Commissioner for Insurance (CFI).

She informed that Mr. Omosehin charged insurance executives at the event to ensure that no outstanding claims are captured in their 2024 financial accounts. Mrs. Nwachukwu pointed out that the CFI also tasked insurers to pay specific attention to the implementation of the 10-year roadmap for the Insurance Strategic Plan.

“The regulator said it would be checking in an intensive and focused manner the outstanding claims in the insurer’s books. The Commission said its focus is on the soundness of the insurance industry, measured by the ability to meet their obligations when due,” Mrs. Nwachukwu said.

She said the CFI also charged the insurance companies to take steps towards recapitalisation by evaluating their financial position regarding the need to raise fresh capital.

According to her, the charge came having exposed a draft of the Risk-Based Supervision (RBS) regulations to the operators, adding that the CFI further encouraged brokers to ensure strict compliance with the “no premium, no cover” regulation, having observed some violations in the past.

She disclosed that NAICOM had encouraged insurers to protect data and submit their companies’ financial statements on time to boost the confidence of stakeholders, as well as pay attention to the legal and regulatory framework for the industry under the Insurance Bill 2024.

“He spoke about focusing on compliance issues under the prudential guidelines released by NAICOM to the insurers and putting an end to corporate governance abuses recognised within the industry,” she said.

She disclosed that the regulator had insisted that insurers get proper approval from NAICOM before any newly appointed executive director assumes duties.

At the session, Insurance Sector Stability; Communication & Stakeholders Management; Technology & Talent Management, and Customer Service & Market Expansions committees were constituted to propel industry’s broad plans and objectives.

Speaking with two policyholders: one of whom pleaded anonymous while the other gave his name as Ola Abiodun, they said they were excited about the marching order given to underwriters to pay genuine claims as some of them narrates past excruciating experiences.

“Many insurance companies walk the talk, they keep their words. But some of them without mentioning their names are not real; you can even see how NAICOM took over the management of one insurance company recently, this is what we want to see: strict regulation, they should be sanctioned who fails to compensate policyholders with genuine claims, trust is a scarce commodity and when confidence is lost, business perishes” they maintained.