NAICOM advises insurance institutions

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By Lucy Nwachukwu

The National Insurance Commission (NAICOM) has urged insurance institutions to report alleged non-settlement of claims to its Complaint Bureau for appropriate action.

News Agency of Nigeria (NAN), in Abuja on Friday reports that Mr Pius Agboola, NAICOM’s Director of Authorisation and Policy, gave this advice in a circular to insurance institutions.

According to Agboola, the commission observed that some institutions had inappropriately arrogated to themselves the authority to exclude some insurers over alleged outstanding claims.

He said it was for that reason that it was imperative to remind all insurance institutions to report such to the statutory grievance and complaint mechanism for redress.

On utilisation of in-country institutions regarding offshore risk, he said institutions were required to ensure Nigerian insurers, reinsurers and pools were allowed to decide the risk they wish to accept.

“This is usually before any application for approval for offshore placement of the excess.

“All recognised reinsurance treaties and additional capacities offered by local re-insurers must be fully utilised before consideration for offshore placement.
“All off-the-system or informal directives to consumers, local re-insurers and pools to accept lower than their desired available capacities are hereby prohibited,” he stated.
Agboola said that the attention of the commission was drawn to recent practices were insurance practitioners failed or neglected to fully utilise relevant in-country capacities of institutions.
He named the institutions to include pools, re-insurers and other approved insurance capabilities prior to applying for approval to cede certain proportion of some risk offshore.
Agboola said the unethical practice undermined the resolve to ensure full utilisation of available in-country capacity in line with domestication and the local content policy.
The director said the practice contravened extant insurance laws and regulations and would not be tolerated by the commission.
He called for strict compliance of the directive of NAICOM as failure to do do would attract regulatory actions.
Meanwhile, NAN gathered that Scib Nigeria and Co Ltd, a leading broker, was recently reprimanded by the commission for failing to abide by its extant laws and regulations on foreign placement.

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