NAICOM to ensure proper rating of insurance for Strike, Riot and Civil Commotion
Seunday Thomas, CFI/CEO, NAICOM
The Commissioner for Insurance, National Insurance Commission (NAICOM), Seunday Thomas, said NAICOM will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums especially on insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies.
Thomas, who said this yesterday at the Chartered Insurance Institute of Nigeria (CIIN) 2020 Professionals’ Forum at Abeokuta, Ogun State, posited that the move would ensure that profitability can be guaranteed and claims settled promptly without financial strain on the companies.
He maintained that the recent outbreak of protests and civil unrest across the country and the resultant losses has exposed the vulnerability of Government, businesses and individuals to unforeseen events, adding that these incidents have further reinforced the value and necessity of the insurance industry.
“However, these incidents are likely to increase insurance claims, thereby exacerbating the already weakened liquidity and capability of insurance companies. This has reinforced the need for proper underwriting to ensure insurers are able to settle corresponding claims obligations to cushion the effect of losses on Nigerian households and businesses,” he said.
Thomas said it is pertinent to note that insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses, which were redundant in the past and which by competition are mostly offered free of charge must now be adequately rated as an important product for the survival of Nigerian businesses.
“The Commission will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies,” he posited.
