Proshare Logo
   Market Date: 28-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Underwriters dare NAICOM on claims payment

Category: Archives

  Read (1991)
Underwriters dare NAICOM on claims payment

Jun 28, 2010 By Patience Saghana

Insurance companies in the country may be daring the National Insurance Commission (NAICOM) on
the regulator’s resolute to ensure that underwriters meet their claims obligations as claims ratio of some insurance companies are still below 10 per cent.
The claims ratios is claims payable as a percentage of premium income. This is the equivalent of gross profit margin for an insurance business. An insurer’s investment income is also part of its core business so the comparison with gross profit is not exact.

Surprisingly, some insurance companies are yet to meet their claims obligations as at when due whilst few others have in their records, insignificant percent of claims which cannot be compared to the huge premiums they generate.For instance, a five-year claims ratio of an acclaimed top player in the insurance industry which generated between N5bn to about N10bn within the five year had claims ratio dangles between 3 and 10 per cent in those five years whilst another top player in the sector whose income range between N5bn to N15bn has claims ration of between 30  to 48 per cent in five years.

Mr. Fola Daniel, Commissioner for Insurance, said that it is also evident from the number of complaints handled by the bureau that the insuring public is becoming aware of the role of NAICOM as the government agency responsible for insurance related matters to which insurance related complaints were forwarded to.He said, “The consumer protection unit of the commission has been properly positioned to handle such complaints with dispatch, any defaulting company will be required to pay such claims. Non-payment of genuine claims  is enough ground to suspend or cancel the operational certificate of a registered insurance company.

“This is why NAICOM advises policy holders to ensure that they obtain their policies from NAICOM registered insurance companies only. A policy obtained from a fake insurance institution has no liability attached and no compensation can be received if such complaints are made to the commission.”He maintained that the commission considers prompt claims settlement as the best awareness campaign tool.

“For us at NAICOM, the greatest awareness campaign an insurance company can embark upon is prompt settlement of claims. When an insurance company pays claims promptly, then a lot of Nigerians would begin to have more confidence and people would buy more insurance products.


Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Archives

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014