Claims expected to reach N20bn, says NIA
Claims consume 44% of N508bn 2021 premium
Insurance companies have so far expended claims totalling N11 billion to insured individuals and organisations that suffered losses from the October 2020 #Endsars civil unrest, but the industry claims payment has been projected to hit N20 billion eventually due to unsettled pending claims.
Ganiyu Musa, chairman of Nigerian Insurers Association (NIA), at a news briefing in Lagos noted that the industry claims paid by member companies in the 2021 financial year amounted to about N224 billion (44 percent of the total industry premium), while gross premiums written was estimated at N508 billion.
According to the recent report on insurance claims released by the NIA, insurance companies settled claims on 718 cases of vandalisation; 93 cases of looting; 113 cases of theft; and 136 cases of loss of cash.
In addition, the insurers association stated that 99 claims were settled on malicious damage; eight on business interruptions; 455 on burglary attacks; and 912 on fire and burnt sites.
On how the NIA intends ensuring full claims payment to the affected insured members, Musa said the association will continue to emphasise the need for insurance companies to pay all genuine insurance claims and will not hesitate to sanction erring member companies.
The NIA chairman further assured that the association would continue to complement the efforts of the National Insurance Commission (NAICOM) in its campaign on the domestication of compulsory insurance in states.
“It is our expectation that laws on compulsory insurance can be domesticated in other states just as Lagos State has done. Beyond the efforts of the commission, NIA has also upscaled its market development initiatives through strategic engagements with various states,” he added.
Speaking on the development of building insurance, Musa said the NIA is in talks with the Lagos State Building Control Agency (LASBCA) as regards using the Nigerian Insurance Industry Database (NIID) verification platform to enforce, verify, and validate the insurance of buildings under construction as mandated by law through the Insurance Act 2003.
The NIID platform, he explained, has made the policy necessary by law for all public buildings. The NIA chairman also disclosed that the exercise will be launched on April 28, while enforcement will commence in May.