Insurers sustain economy with N747.06bn claim settlement

Despite worries about a recession, operators in the nation’s insurance industry have supported the economy with claim settlement of about N747.06 billion in the last five years.

This data was obtained from the Nigerian Insurers Association (NIA) digest, a statistical journal of the association, revealed that in 2015 non-life underwriters settled claims of N54.65 billion while life operators paid N50.57 billion. In 2016, non-life operators paid N57.76 billion while life operators paid N61.87 billion. In the subsequent year, non-life paid 70.52 billion just life N72.31 billion.

In 2018, non-life insurers paid N98.70 billion while life operators paid N94.78 billion and in 2019, non-life paid N78.72 billion, as against life operators’ N107.17 billion.

Meanwhile, the National Insurance Commission (NAICOM) said it would continue to promote economic growth by ensuring that operators in the sector meet their claim obligations, adding that it would be profiling insurance companies with huge unsettled claims for necessary regulatory action.

The Commissioner for Insurance, Sunday Thomas, who spoke on the development, said the era of a huge backlog is over. He advised operators to be responsive to customers in terms of prompt settlement of claims to change Nigerian perception about insurance business across the country.

Thomas charged operators to strengthen their human and financial capital for effective participation in a bigger ticket risk explained that it has been observed that the gains of domestication the policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector.

“More businesses especially in the oil and gas and aviation sectors are now being re-insured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for the industry.

These are the areas where the industry can impose itself on the economy through the control of funds for national development.

“The industry must invest especially, in technology, one of the key drivers for developing the market. The institutions should be prepared to digitalise their processes, procedures and systems to make their operations seamless and real-time. The Commission is investing in automating its processes and expects nothing less from the insurance operators.”