Insurance regulator, the National Insurance Commission (NAICOM), has urged board of directors of insurance companies to give prompt claims settlement a priority in their policy decisions.
Besides, it also want the board to ensure the financial soundness and general wellbeing of their organisation by monitoring the management, to guarantee efficient deployment of human and capital resources in the overall benefit of all stakeholders.
Sunday Thomas, acting commissioner for Insurance, NAICOM, who gave the advice during a day Insurance Director’s Conference held in Lagos, reminded the directors that their companies were in the business of insurance primarily to settle genuine claims made by policyholders.
In all policy formulations of the board, I am appealing that the prompt settlement of claims be given a high priority, Thomas said.
The event with the theme ‘Corporate Governance: The Panacea for Sustainable Growth and Development of Insurance Business in Nigeria’ was organised by the College of Insurance and Financial Management (CIFM) in collaboration with NAICOM.
He further noted that the position of the Board of Directors was key in achieving a high level of efficiency in an institution’s corporate governance structure, stating that the low level of effectiveness of corporate governance oversights in the insurance sector remained one of the major regulatory concerns of the Commission.
Let me state here for emphasis that the primary role of the Board either in a private or public entity remains the oversight of management to ensure the corporate goals, vision, mission and values of the entity are strictly upheld at all time, he said.
“The observance of this role has been lacking in some of our companies and which has contributed in no small measure to the challenges facing these companies today,” he noted.
Nigeria’s insurance contribution to the nation’s GDP at less than 1 percent has under performed its potential, especially when compared with other sectors in the financial services industry, he said.
“I believe that once we can successfully navigate this corner, we could be on our way to entrenching a financially solid, vibrant, viable and active insurance market that would bring about not only an increase in penetration but a substantial increase in the industry’s contribution to GDP. This will also simulate accumulation of long term funds for infrastructural financing, job creation, and an improved Return on Investment,” he said.
