The National Insurance Commission (NAICOM) has stated that insurance companies are now required to cover the costs of every case it resolves.

This decision was made at the Insurers’ Committee Meeting held in Lagos on Wednesday.

 

Mrs Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-committee, said the commission had said that the move aimed to sanitise the insurance industry.

 

Nwachukwu, also Managing Director of Rex Insurance Ltd., stated that the regulator noted this decision would help reduce complaints from policyholders.

 

She noted that NAICOM said it would also promote accountability among insurance companies.

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

 

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

 

She 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.

 

She noted that NAICOM was collaborating with NITDA and the Nigeria Data Protection Agency to achieve this.

 

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

 

Nwachukwu explained that NAICOM remained committed to creating an enabling environment for insurance practitioners.

 

She 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, she 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.

 

She added that the current framework will be reviewed as it is based on existing capital requirements. (NAN) (www.nannews.ng)

Edited by Kamal Tayo Oropo