NAICOM Tasks Insurance Companies On Prompt Claim Settlement
The National Insurance Commission (NAICOM) has reiterated its firm stance on timely settlement of claims, urging insurers to prioritize customer obligations to restore confidence in the industry.
The regulator emphasized that delayed or outstanding claims remain one of the biggest barriers to insurance penetration in Nigeria and warned that any company failing to honour valid claims will face strict sanctions, including possible licence withdrawal. NAICOM’s recent directives require insurers to clear all outstanding claims within set deadlines, stressing that unresolved claims erode trust and discourage policyholders from maintaining or renewing their policies.
The Commission has also intensified oversight on operators with recurring complaints, directing some insurance firms to present concrete turnaround plans that demonstrate the capacity to meet policyholder obligations.
This follows rising customer grievances, with data showing an increase in complaints linked to delayed payouts and poor communication from insurers. NAICOM noted that prompt claims settlement is not only a regulatory requirement but also a critical element for strengthening consumer protection and improving the credibility of the industry.
By enforcing stricter compliance and demanding greater transparency from insurance companies, NAICOM aims to rebuild trust, enhance operational discipline, and position the Nigerian insurance sector for sustainable growth. The regulator maintains that insurers must demonstrate professionalism, financial responsibility, and commitment to policyholders to remain competitive and operational in the evolving market.
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