Tension in insurance sector as operators undermine rate policy

THERE are apprehensions in the insurance industry over allegations that some insurance operators have cleverly created means of giving out discounts on compulsory classes of insurance thereby bypassing the pricing policy by the National Insurance Commission, NAICOM.

Consequently, concerned stakeholders are worried that the development could pose a threat to industry claims payment ability which could erode the confidence that is gradually returning to the sector.

Although NAICOM put a peg on compulsory classes of insurance earlier this year, Insurance Vanguard investigations reveal that some operators have found ways around it to give out discounts just to get the businesses at all cost.

The objective of the compulsory insurance policies is to provide protection to third parties as well as the general public and they include builder’s liability insurance; employer’s liability insurance; motor third party liability insurance; occupier’s liability insurance; as well as healthcare professional indemnity insurance.

Vanguard, December 31, 2018

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