BY NGOZI ONYEAKUSI

In a bid to ensure genuine claims are settled promptly and seamlessly in the insurance industry, the Nigeria Insurers Association (NIA)  has disclosed plans to collaborate with Fintechs in this regard.

 

Briefing  journalists at the first quarter media chat in Lagos,   NIA Chairman, Mr Kunle Ahmed said NIA will soon be inviting Fintechs to make a pitch on different innovations that will ensure that the claim process is shortened leading to improvement in the timely payment of claims

 

According to him, the hallmark of any insurance company worth its license is  payment of claims.

He noted that though the 2024 claims payment data for the industry was still being compiled, he  however stated that in 2023, the insurance industry paid N536.5 billion in claims, which is about 53% of the gross written premium for that year.

Ahmed  pointed out that despite the quantum of the claims paid by the industry, there is still significant improvements to be made on the ease of making a claim and general improvement of the claim process.

This, he said is the only way to build public trust and ensure the sustainability of the sector.

He commended the industry’s regulator, NAICOM  in its quest to ensure that policyholders are settled promptly saying,

“By publishing the names of insurance companies with outstanding claims and the details of these complaints, NAICOM is promoting transparency and demonstrating commitment to protecting the interests of policyholders”.

This, according to him sends a strong message to insurers that the regulator is taking the issue of unpaid claims seriously and is willing to take concrete action to ensure that policyholders receive their due compensation as at when due.

He said thst whilst most companies will meet their claims obligations, it is believed that the threat of being publicly named and shamed, coupled with potential sanctions for non-compliance, is a strong incentive for insurance companies to prioritize the settlement of outstanding claims and improve their claims-handling processes.

NAICOM, he said  has explicitly stated its zero tolerance for delays in settling genuine claims and has warned that non-payment could even lead to the cancellation of licenses.

Ahmed stated that industry should also not lose sight of the fact that by making this information public and launching the NAICOM Complaint Management Portal, the regulator is empowering policyholders to be more informed and to utilize the official channels for resolving their grievances.

 

This, he said could help policyholders who may have felt helpless in the face of delayed or denied claims.

The publications could also help to identify systemic issues within specific insurance companies or the industry as a whole that contribute to the high volume of outstanding claims he assured.

This allows NAICOM to develop targeted regulatory interventions to address these underlying problems.

 

Speaking further, he noted that 2024 performance of the insurance industry revealed a complex landscape marked by significant growth in certain areas alongside persistent and emerging challenges.

According him, available data up to the end of Q3 2024 indicated robust growth in gross premiums from the regulator noted a 61% year-on-year increase in Q3 2024, reaching N1.2 trillion. This growth, he said was largely driven by the non-life insurance sector, which constituted approximately 69% of the total premium income.

Within the non-life business, Fire, Oil & Gas insurance were significant contributors to the increased revenue. All non-life business products showed robust quarter-on-quarter growth.

The life insurance business also experienced substantial growth, with the report indicating a 45% quarter-on-quarter increase in Q3 2024. Group Life emerged as the largest premium-generating component within the life segment.

Despite a rise in the net loss ratio in Q2 2024 compared to Q1 2024, the Nigerian insurance market remained profitable overall. The total assets reached N3.9 trillion by the end of September 2024, demonstrating a healthy expansion, he said.