NAICOM urged to implement stringent measures in insurance industry –ARIAN

By Chiamaka Ajeamo         

The Association of Registered Insurance Agents of Nigeria (ARIAN) have called on the National Insurance Commission (NAICOM) to implement and enforce strict rules especially in claims management to achieve  a stronger insurance sector in Nigeria.

Speaking with Daily Sun in Lagos, the National Public Relations Officer, ARIAN, Malachy Maduako, said prompt claims payment a major challenge the industry, is presently facing  is affecting trust and confidence insurance consumers have in agents who sell policies to them as well as insurance companies.

Maduako said the major reason Nigerians have apathy towards insurance was not necessarily due to lack of finance to get policies, but because insurance firms do not pay claims and for the few that do, they are not prompt to meet policyholders’ purposes for which they invested.

Maduako said that until this challenge is taken care of, the penetration level of insurance in Nigeria will continue to be low because agents who are one of major drivers of insurance penetration in the country bear the largest burden when insurance claims are not paid promptly to customers.

“Many insurance consumers purchase products because of the trust they have in agents and not necessarily because of an insurance company. This is why agents bear the burden more when insurance firm do not pay claims to policyholders as at when due.

“Agents are essential channel of distribution in the insurance business but when they are not well catered for via the industry laws, patronage diminishes. Agents contribute greatly to the deepening of insurance penetration because we are the ones that take insurance products and services to the remote areas for people to buy. So, one of the easiest methods to have deeper insurance penetration in the country is through agents, because we are the most accessible channel to the masses. ARIAN as an umbrella body for agents in Nigeria, ensures that all its members are noble professionals who are responsible and trustworthy in carrying out their duties.

“Hence, when the regulatory bodies take care of agents via the enforcement of stringent laws, it will keep the insurance companies on their toes in fulfilling their obligations when due and when this happens, more hands will do the job and the insurance industry will continue to grow and this will automatically increase the Gross Domestic Product of the nation.

“We appeal to NAICOM to come up with stern measures for insurance firms that are not getting it right especially as regards claims payment which is a major problem associated with companies. The key reason people acquire policies is to meet targets so, when they are not paid claims as at when due it disrupts their budget and they lose trust in insurance and we, agents.”