The Managing Director,
Nigeria Reinsurance Corporation (Nigeria Re), Mrs Isioma Chukwuma, has called for improvement in the business of underwriting in the country.
Chukwuma made the call in an interview with The Tide source in Lagos, recently.
Chukwuma said the sorry state of the sector was due to bad underwriting of some insurance operators in the country.
She said prospects in insurance industry was visible, but that operators needed to work hard and in accordance with the insurance regulations.
“This would make the sector compete with its counterparts in the world,” she said.
She also urged insurance operators to always try and improve their knowledge on insurance.
She said most operators in insurance industry in the country were not performing well due to inadequate knowledge and writing bad businesses.
Chukwuma, however, stressed that efficient knowledge of the field would positively impact on the business of the adopting firms.
“It would have a multiplier effect on the entire insurance industry.
“The insurance penetration and acceptance could increase, if all operators are ready to improve in the way they conduct their businesses,” she said.
She added that while many underwriting firms were struggling with this challenge, others had been thrown out of the business.
She called on insurance professionals to change their conservative lifestyle and adopt a flexible system of operation, believing this would greatly help in moving the industry to the next level.
She advised insurance companies to be careful on paying claims that were not genuine, adding that such payments had put the balance sheet of most insurers in red light.
“We have to be careful not to pay claims that are not genuine though I know some insurers have done this out of ignorance, which is harmful for the insurance industry.”
“Ensure that proper documentation is presented by the claimants and verified by the insuring firms on time to ensure that the claim process does not drag for too long.
“Payment of claim is a major function of insurance companies as well as a very sensitive function.
“While companies see how quickly they can pay compensation when a risk occurs, the underwriters must also ensure that the claims settled are truly genuine,” she added.