IGI Plc leads as NAICOM reports 1,571 Policyholder Complaints against Insurers

The National Insurance Commission (NAICOM) has released a report detailing 1,571 complaints filed by policyholders against various insurance companies in Nigeria, with Industrial and General Insurance (IGI) Plc topping the list.

The report, published on NAICOM’s website on Wednesday, is part of ongoing efforts to ensure that insurers settle valid claims following dispute resolution.

The complaints span a range of insurance policies, including motor insurance, group life insurance, education policies, bonds, annuities, and all-risk policies, among others.

The document aims to promote transparency and accountability within the sector, revealing that several insurers face a high volume of customer grievances, from delayed claim settlements to disputes over policy terms.

IGI Plc records highest number of complaints

According to the report, Industrial and General Insurance (IGI) Plc recorded the highest number of complaints, with 327 cases from policyholders. African Alliance Insurance Plc followed with 281 complaints.

• Other companies with significant complaints include Standard Alliance Insurance (229 complaints), A&G Insurance Plc (80 complaints), AIICO Insurance Plc (65 complaints), and Coronation Insurance Plc (29 complaints).
• NAICOM has consistently emphasized the need for insurance companies to fulfill their obligations to policyholders. The commission has warned that, moving forward, insurers will be held financially responsible for all resolved complaints and must promptly settle claims once disputes are adjudicated.
• This move aligns with NAICOM’s efforts to improve consumer confidence in the insurance industry by enforcing compliance with settlement obligations. The commission reiterated that failure to pay valid claims could result in regulatory sanctions against defaulting insurers.

In recent years, delayed or unpaid claims have been a major concern in Nigeria’s insurance sector. Many policyholders have accused insurers of avoiding settlements or creating bureaucratic hurdles that make it difficult to receive payouts.

The latest publication serves as a transparency initiative aimed at exposing companies with unresolved customer disputes.

What you should know

• The National Insurance Commission has urged policyholders to report non-payment of claims and assured them that complaints will be investigated.
• As previously reported by Nairametrics, NAICOM directed insurance companies to pay for all cases resolved by the regulator as part of efforts to sanitize the industry and improve policyholder confidence.
• This directive aims to rebuild trust in the industry, which has been marred by cases of delayed or denied claims, discouraging many Nigerians from embracing insurance products. By holding insurers accountable, confidence in the sector can be restored, promoting higher levels of customer satisfaction.

In a bid to ensure regulatory compliance, NAICOM urged insurance firms to meet all financial reporting requirements to ensure transparency.