Insurance Firms Pay N769bn Claims in 3 Years
The insurance sector paid claims totalling N769.26bn in three years, the National Insurance Commission said in a report.
The commission revealed that the sector paid N186.4bn, N252.19bn and N330.63bn in 2017, 2018 and 2019, respectively.
The acting Commissioner for Insurance, Mr Sunday Thomas, said while the industry had continued to pay huge claims, there were still some issues of claims default.
He said, “There is no denying the fact that there are indeed some cases of delay in the payment of claims by some operators. The commission is however addressing such cases as soon as they are brought to our notice.
“It is for this reason that the commission has strengthened its Complaint Bureau Unit in order to effectively address consumers’ complaints within the shortest time possible.”
He said the commission had also as a matter of deliberate policy adjusted its strategy to focus more on developmental issues than compliance issues going forward in the overall interest of all stakeholders.
“The foundation will ensure successful implementation of its initiatives,” he said.
Thomas said the commission had in 2019 initiated the process to recapitalise the insurance industry in order to upscale its financial standing to meet up with current economic realities and avoid imminent systemic collapse and solvency crisis in the insurance sector.
He said this would ensure that the industry became more robust in its technical competence and financial base, build confidence, trust and enhance market value.
The commissioner said it was further aimed at repositioning the sector for self-actualisation in terms of growth and development and that the process was expected to be concluded by December 2020.
He said, “In 2009, the commission launched the Market Development and Restructuring Initiative aimed at a comprehensive pursuit of development of the industry as well as ensuring full compliance with extant laws in respect of compulsory insurance.
“The first phase of the project was successfully carried out in all the six geo-political zones in the country. The second phase of the MDRI project will soon be unveiled and it will mark out clear targets and tasks for all stakeholders in the industry.”
According to him, the commission is committed to vigorously pursuing the implementation of compulsory insurance with the collaboration and support of all stakeholders.
He also said the annuity business was an aspect of life insurance that was gradually taking shape in the market.
Annuity, he added, had recorded significant boost with an increase in its contribution to the sector.
He said, “The public is becoming more exposed and knowledgeable about the workings of annuity. This, we hope, will continue in the coming years as the future is looking very bright. This has also shown a positive growth in trust and confidence in the sector.”
