Barbara Bako, Abuja.
The National Insurance Commission (NAICOM) has said that it will no longer tolerate any unnecessary delays in the settlement of genuine claims.
The Commissioner for Insurance/CEO Mr. Olusegun Omosehin said this on Wednesday in Lagos at the 2024 insurance directors’ conference themed “Board Performance in the Nigerian Insurance Industry: A GRC Approach”
According to the CFO the commission’s primary focus is to ensure that insurers reduce their outstanding claims significantly by the end of the year by payment of genuine claims and timely too.
As a Commission, Mr. Omosehin said the Commission is committed to strictly enforcing the law and taking swift action against any insurer who has failed to meet their claim obligations.
The Commissioner said, “Simply put, if a company cannot honor legitimate claims, it has no place in our industry.”
He stated that the financial stability and soundness of the insurance institutions are now more vital than ever.
He said, “To remain relevant and competitive, our institutions must comply with all the relevant prudential regulations and requirements. We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so ensuring adequate capitalization is no longer optional.”
“We must prioritize robust capitalization to effectively tap into target markets and navigate current industry realities.
“The Commission, in the last one and half years has successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed.
“However, we are using this medium to seek your cooperation as Directors of those institutions and demand compliance on issues that have been raised and directed to the various Boards, for attention.”
While speaking on the theme, the CFO said that focusing on the performance of the Board and the critical role of Governance, Risk and Compliance principles, could not have come at a better time.
He said that in today’s global business landscape, integrating GRC at the Board level is vital for business success and sustainability.
According to Mr. Omosehin, integrating GRC at the Board level is no longer optional, but an essential ingredient for enhancing decision-making, transparency, accountability and risk management.
He said, Effective GRC ensures that boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance.
He also stated that as a regulator, “We believe that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture.”
He urged the board as the highest policy making organ for the various institutions to demonstrate genuine commitment and strict adherence to Governance, Risk, and Compliance principles.
If carefully implemented he said, this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.
He added that the Commission is committed to aligning the insurance sector with the President’s goal of growing the Nigerian economy to USD$1 trillion by 2030.
In order to achieve this, the CFO said the commission is committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector.
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He said, “De-risking a trillion-dollar economy takes more than mere rhetoric. To this end, we are fully committed to working with the National Assembly in delivering the required legal and regulatory framework which would flow from the successful passage of the 2024 Insurance Reform Bill.”
Also, as part of NAICOM’s strategic plan, the commission has set 5 key priorities that will deliver on this agenda.
The priorities he said are; “Safeguard policyholders and improve confidence in the insurance industry, Strengthen our supervisory capabilities, Improve safety and soundness of our institutions, Foster Innovation and sustainability of the insurance industry, Enhance overall insurance accessibility and penetration in Nigeria”
In conclusion, the CFO urges the directors to develop and implement policies that promote adherence to good governance, effective risk management and compliance principles.
“Our goal is to ensure sustainability, securing the long-term viability and future resilience of insurance entities. We all have a stake in the prosperity of our institutions since the insurance sector’s growth is essential to the overall health and resilience of our national economy,” he added.
