Insurance and Prompt Claims Payment: the NEM Insurance Way
The concept of insurance has come a long way as an integral part of human civilisation. According to history, it dates back to ancient times when traders would protect themselves from potential losses due to shipwrecks, piracy, or other unforeseen events. Aside the earliest forms of insurance emerging from the Babylonians around 2100 BCE, insurance as we know it today began to take shape in the 17th century in England. Marine insurance was the first form of insurance to be developed, before later encompassing other areas such as fire, life, health, automobile and so on.
Today, insurance is a key component of risk management which is providing financial protection for individuals and businesses against unforeseen circumstances and lessening the impact of financial losses through insurance policies. However, the true value of an insurance policy lies in the prompt payment of claims. In the event of an accident, illness, or other covered loss, an insurance policy can provide a sense of security and financial stability. But if the insurance company fails to pay out a claim in a timely manner, the policyholder can be left in a vulnerable and uncertain position.
The prompt payment of claims is not only vital for the financial security of policyholders, but also for the overall brand reputation of an insurance company. A company that consistently fails to pay out claims promptly will in no time gain a reputation as untrustworthy and unreliable. Besides, delayed claims payment can also have wider economic consequences. For instance, if a business owner is waiting for an insurance payout to repair damages or replace lost equipment, they may be unable to operate effectively, thereby leading to lost productivity and revenue.
Therefore, it is a sacrosanct ideal that an insurer must prioritize prompt claims payment to maintain the trust of its policyholders and avoid damaging its own reputation. In explicit terms, this implies ensuring efficient claims processing, clear communication with policyholders and proactive efforts to resolve any issues that may arise.
In Nigeria, the ability of insurance companies to uphold the value of their insurance policies through the integrity of prompt claims settlement is regulated by the National Insurance Commission (NAICOM), which is responsible for the supervision, regulation, and development of the industry. NAICOM has established guidelines and regulations that insurance companies must comply with to ensure that policyholders are protected, and their claims are always paid promptly. As a leading NAICOM-regulated insurance company in Nigeria, NEM Insurance Plc is an excellent example of an insurer that has earned a sterling reputation for speedy claims settlement.
With over 6 decades of solid pedigree in the Nigerian insurance landscape, NEM Insurance Plc offers a wide range of insurance products including motor insurance, general accident insurance, fire and special perils insurance, marine insurance, aviation insurance, oil and gas insurance, agriculture insurance, home protection and so on. Over time, customers from various walks of life have come to trust NEM Insurance because of its history of timely claims payment. Also well known for keeping high ethical standards, the company continues to provide unmatched exceptional services that stand the test of time with technological innovations.
Naturally, the management of NEM Insurance is led by accomplished professionals who believe in and practise the sanctity of prompt claims payment as the soul of insurance. In fact, the Managing Director/CEO, NEM Insurance Plc, Tope Smart, has consistently affirmed that the company not only acknowledges the importance of speedy claims settlement to its clients, but also does not joke with it. According to him, “We understand that providing insurance is a promise to our clients, and we take that commitment seriously. We recognise that when one of our clients files a claim, they need help and we do not want to add to their pain. As a result, we have put in place a system that guarantees claims are processed and paid in the least amount of time.”
It is also a fact that the ability of an insurer to pay claims promptly is a function of the efficiency of its response team. In this aspect, NEM Insurance boasts a crack claims team that is made up of highly trained professionals who are equipped
with the necessary skills to respond and handle claims efficiently. They are always available to answer any questions customers may have regarding their claims. And they do so with intuitive empathy and attentive passion. It is no wonder that the company has maintained a historical track record of prompt claims payment till today. As a matter of fact, NEM Insurance has fully paid over N50.55 billion in claims between 2014 and 2021.
So, as the world today progressively gets riskier and the insurance industry gets more sophisticated with technological advances, NEM Insurance Plc remains committed to the ultimate satisfaction of customers’ needs and expectations. The company will not only continue to be an industry model of excellence in prompt claims payments, but will also keep the whole process as simple, open and responsive as possible. After all, the effectiveness of a speedy claims settlement lies in its simplicity and transparency. That is why, at NEM Insurance, the claims procedure is simple and open. If the claim is legitimate, it is swiftly resolved and the policyholder is compensated for the agreed amount after all the conditions are fulfilled. That is the way responsible insurance works and that is how a reliable, forward-looking insurance company together helps its customers to succeed.