Key Points
- Clearance of Pending Claims: NAICOM has ordered African Alliance to promptly address all existing customer claims.
- Turnaround Plan: The company must submit a detailed plan outlining how it will resolve these issues.
- Compliance or Consequences: NAICOM has warned of stricter regulatory measures if the company fails to meet their expectations within a set timeframe.
The National Insurance Commission (NAICOM), the regulatory body overseeing the Nigerian insurance sector, has issued a directive to the Board of African Alliance Insurance Plc, instructing them to promptly and thoroughly address any and all pending claims from their policyholders.
On Friday in Abuja, NAICOM announced that this decision was prompted by a significant rise in complaints from annuitants and insurance claimants against the company.
Conveying Regulatory Expectations for the Insurance Sector
NAICOM has instructed the board of directors of African Alliance Insurance to promptly submit a comprehensive turnaround plan aimed at addressing the current difficulties faced by the company. The commission warned that it would take additional regulatory measures against the company if it failed to rectify the challenges within the provided grace period.
The commission also announced that it had placed the company under its Regulatory Order (RO).
“Following increased complaints by annuitants and insurance claimants against African Alliance Insurance Plc regarding the company’s delay and/or inability to fulfil its obligations, NAICOM has given marching orders to the company. The order mandates the company to resolve and ensure the settlement of outstanding claims,” the commission stated.
Potential Sanctions
Given the heightened challenges, the company should expect further actions if it fails to address the issues within the specified timeline, NAICOM said.
NAICOM has reassured stakeholders in the insurance sector of its dedication to guaranteeing fair treatment for all parties involved. The organisation also expressed its strong commitment to upholding professionalism and ethical conduct among all licensed insurance operators.
The primary purpose of NAICOM is to oversee and regulate the insurance sector, with the ultimate goal of ensuring its safety, stability, and soundness. This includes enforcing measures to adequately protect the interests of policyholders and the general public.
Additionally, NAICOM aims to enhance trust and confidence in the insurance sector, as well as to foster innovation and encourage the development of the insurance market.
