As part of measures aimed at raising insurance standard and checking the level of claims’ costs, insurance operators have been advised to address their internal weaknesses and abuses.
Giving the advice in a chat, veteran insurance and pension consultant, Abayomi Olafiminhan explained that one of the challenges facing the industry today is the undue attraction the industry is getting and sharp practices of some marketers to put pressure on underwriters to lower their underwriting standard.
Olafiminhan identified the abuses to include the growing tendency for claims’ managers to unduly make concessions, all of which combine to compromise the interest of stakeholders?
As the industry expands to absorb the attendant variables, the need to use effective mechanism to check internal abuses becomes crucial.
He stressed that although profit maximization remains the watchword of insurance companies like every other business, operators themselves own the industry the duty to discourage all malpractices aimed at compromising underwriting and claims management standard.
He explained that the attitude of average Nigerian to get rich quick coupled with corruption in high places has eaten deep into some of the transparent operations of some insurers.
He emphasized that some of the ways that are needed to further make operations easier include the need for operators to fortify pre-loss adjustments, risk assessment and rating and updated reinsurance.
The veteran also tasked operators on good corporate governance which boils down to good employer/employee attitude. He identified good attitude as yardstick for keeping to the set standards, noting that the best example should be shown from the board level, through the day-to-day management to the junior employees.