NATIONAL Insurance Commission, NAICOM, has accused telecommunication companies of short-changing insurance firms in premium payments.
According to the Commissioner for Insurance, Mr. Mohammed Kari, in the mobile insurance partnership with telecom operators, the operators rake in over 80 percent of the premium as commission while the insurers bear the burden of paying claims when liabilities occur. He said this was the reason behind the Commission's suspension of insurers' partnership with telecom operators.
Meanwhile, Kari said the regulator is currently reviewing the issue of capital adequacy in the insurance sector to ascertain the requirement for operators, assuring, however, that there will be no reckless introduction of capital requirements for insurers. Also, he disclosed that NAICOM was planning to evolve a guideline that will ensure that insurance brokers do not just hook up to a single client, but expand their operations to deepen the market.
Kari further disclosed that the Commission will conduct a pilot inspection on the insurance industry under its Risk-Based Supervision (RBS) initiative before the end of 2017 to test adaptation to the model and determine gaps and problems before full implementation.