The National Insurance Commission (NAICOM) and the CRC Credit Bureau have agreed to collaborate to improve risk management in the risk underwriting business by linking insurance sector data to national credit reporting systems.
The latest move agreed on Monday at a meeting between the Managing Director of the Bureau, Tunde Popoola and the National Commissioner for Insurance, Olusegun Omosehin, is designed to boost digital adoption, mitigate fraud, and enhance both risk underwriting and claims processes in Nigeria’s insurance industry.
To actualize the laudable goal, the CEOs of the two institutions agreed on leveraging data and analytics for regulatory oversight, KYC, fraud detection and industry capacity building in the insurance industry.
Similarly, they also agreed to pursue concrete steps, including product demonstrations and analytics showcases; develop a proposal for an insurance-sector database and integration framework; deliver capacity-building/training sessions, a dedicated insurance-sector database, and closer operational collaboration.
- Advertisement -
Industry experts believe that the collaboration of the two institutions will help to integrate insurance data into the national data base and boost the growth of the industry in several ways, including more accurate underwriting and risk-based pricing, speedier, more accurate claims processing and fraud prevention and detection of fraudulent activities, including multiple claims.
Other benefits of the deal anticipated by the analysts on the partnership are enhanced KYC and customer verification, leveraging CRC’s datasets and support for digital insurance products and financial inclusion through automated decision making.
