Insurers’ claims payment rise 50% as policy-holders strengthen positions

There are indications that policy holders are now extracting claims payments from their insurance firms, a development which may have caused aggregate claims paid by the firms to rise by 50.7 per cent to N365.5 billion Year-on-Year, YoY, in the third quarter of 2023, Q3’23.

According to data from the National Insurance Commission, NAICOM, the growth is against N242.6 billion recorded in the third quarter of 2022, Q3’22.

Meanwhile on quarter-on-quarter basis, QoQ, claims payment went up by 112.4 per cent in Q3’23 from N172.1 billion recorded in Q2’23.

According to NAICOM, the growth in claims payment is being swelled by increasing public enlightenment with regards insurance merits and continued improvement in claims management.

NAICOM, however, warned that the development is a call for faster growth in premium generation and adequate rate quoting.

Speaking on the development, Chairman of the Nigerian Insurers Association, NIA, Mr. Olusegun Omosehin, said that despite various challenges confronting the sector, the industry has remained resilient.

He stated: “Despite the economic downturn being experienced in Nigeria with its cataclysmic effect on all aspect of our national life, the Nigerian insurance industry continues to take its pride of place in the Nigerian economic space as the economic driver, restorer of businesses and a dependable safeguard for national assets.

“It is worthy to note that as a subset of the national financial system, the insurance industry also had a fair dose of the general economic and socio-political problems bedeviling the country in the past one year.”

He said notwithstanding these challenges, insurance companies continue to discharge their obligations as financial intermediators and restorers of businesses in line with their mandate.

He added that the Association is working closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services and technology segments to promote the business of insurance and increase its contribution to National Gross Domestic Product (GDP).