Industry’s settled claims hit N713 billion, as profit tops N2trillion 

Policyholders in the nation’s insurance industry, between 2013 and 2018 have received claims worth N713 billion after they suffered from insured risks, even as the sector generated about N2.1 trillion premium income in seven years.

For the operators, this shows that there is a consistent progress in claims payment by the industry, with more policyholders now more aware of how to make claims when an insured risk occurs.

In 2013 financial year, insurance sector paid N92.9 billion claims to claimants, as the non-life underwriters paid N38.6 billion, while life insurers paid N34.3 billion.

By 2014, policyholders got N35.9 billion claims from life underwriters, as well as N51 billion from non-life insurers, bringing the total claims paid for that financial year to N86.9 billion.

At the end of 2015 financial year, the industry paid N105.1 billion claims, with life outfits paying N50.5 billion, while non-life operators paid N54.6 billion compensation to policyholders.

A cumulative sum of N119.5 billion was paid as compensation to claimants in 2016, wherein life insurance firms remitted N61.8 billion and non-life outfits paid N57.7 billion claims.

However, in 2017, the industry paid over N130 billion claims, while they paid a sum of N143 billion as claims to policyholders who have suffered insured losses at the end of the third quarter of 2018.

An analysis shows that the benefiting claimants comprise public and private companies, government at federal, states and local council levels, as well as individuals who have paid premium to insure their respective risks before they happened.

The Director-General, Nigerian Insurers Association (NIA), Mrs. Yetunde Ilori, who spoke to The Guardian, shortly after a media parley in Lagos,  called on Nigerians to insure their lives and properties, as well as subscribe to different insurance product packages to suit their respective risks,  promising that insurance companies are ready to pay genuine claims.

She said the claims profile of the industry has improved over time and that the industry is piortising claims payments, warning policyholders filling fraudulent claims to insurers to desist from such act.

She also noted that the Nigerian Insurance Industry Database(NIID) and the recently launched USSD are mechanism of the insurance industry to detect fake insurance policies and claims, noting that, the interest of policyholders remain crucial to insurance business.