By Sola Alabadan
The Commissioner For Insurance, Olusegun Omosehin says the National Insurance Commission (NAICOM) would strictly enforce the law and take swift action against any insurer that fail to meet its claim obligations, going forward.
Omosehin spoke at the 2024 Insurance Directors’ Conference on Wednesday in Lagos with the theme: “Board Performance in the Nigerian Insurance Industry: A GRC Approach”.
He stated that “The Commission’s primary focus is on ensuring timely payment of genuine claims (payment of claims and timely too).
“We expect all insurers to significantly reduce their outstanding claims by the end of the year, as emphasised during the last Insurers Committee meeting. “Unnecessary delays in the settlement of genuine claims will no longer be tolerated.
“Simply put, if a company cannot honour
legitimate claims, it has no place in our industry.”
In today’s global business landscape, he pointed out that integrating GRC at the Board level is vital for business success and sustainability, adding that it is no longer optional, but an essential ingredient for enhancing decision making, transparency, accountability and risk management.
Effective GRC ensures that Boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance, he noted.
As a regulator, he said NAICOM believes 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.
To overcome these challenges, the Board as the highest policy making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and compliance principles, he further stated.
He stressed that if Governance, Risk, and compliance principles are carefully implemented, this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.
Omosehin noted that the financial stability and soundness of our institutions are now more vital than ever before.
“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 capitalisation is no longer optional. We must prioritise robust capitalisation to effectively tap into target markets and navigate current industry realities.
The Commission, in the last one and half years, have successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed.
He, however, sought for the cooperation of theseDirectors and demand compliance on issues that have been raised and directed to the various Boards, for
attention.
He equally urged the directors, as policymakers across our institutions, to develop and implement policies that
promotes 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 insurance sector’s growth is essential to the overall health and resilience of our national economy, the NAICOM boss added.
