The National Insurance Commission (NAICOM) has set the stage for increased transparency in Nigeria’s insurance industry by urging insurers to publish outstanding claims, a move aimed at rebuilding trust and enhancing accountability.
With the December 31, 2024, deadline for clearing unpaid claims now past, NAICOM is expected to audit insurers’ records to determine compliance. Commissioner for Insurance, Olusegun Omosehin, had earlier mandated companies to ensure no unsettled claims appeared in their 2024 financial reports, emphasizing the industry’s need to honor genuine claims promptly.
Transparency advocates argue that publicizing unpaid claims benefits all stakeholders. It aids policyholders in making informed decisions, prompts dormant claimants to act, and helps families discover overlooked claims. For instance, a family recently recovered a deceased father’s unclaimed insurance policy after seeing his name in a published list by AIICO Insurance Plc.
Beyond assisting claimants, this step is expected to put pressure on insurers to address claim payment delays. Companies with high volumes of unpaid claims risk losing public trust, while the industry as a whole stands to benefit from a clear picture of its financial health. A low unpaid claims ratio signals strength, while a high ratio raises red flags.
NAICOM’s push for transparency underscores its commitment to reforming the sector, ensuring insurers deliver on their promises and restoring public confidence in the industry.
