Insurance: Experts commend consistent increase in claims payment, gross income Insurance

Some experts in the insurance industry have commended the consistent increase in gross income and settlement of claims by insurance companies.

Some of the experts who spoke to our correspondent in Abuja on Monday, attributed the successes to improved policyholders’ knowledge on claims processes and increased awareness campaigns.

The experts also said the development was due to more effective warnings from the National Insurance Commission (NAICOM).

Mr Ekerete Gam-Ikon, the Convener of ‘Insurance September’, expressed optimism that the gross premium income in the sector for 2023 would be boosted.
”I will not be surprised if we hit the one trillion naira mark this year.

”Certainly, there have been improvements in different areas of insurance business since COVID-19 allowed us to return to business fully.

”More questions were asked by members of the public and in response, some of us enlightened and educated them on how to get better insurance experience.

”Policyholders now have better understanding of the claims processes, and with the emergence of claims consultants, we will see more claims payments happening.

”As per the increase in premium, again as a result of more customer education, members of the insuring public are inclined to buy classes of insurance they were not doing before,” he said.

The insurance expert suggested that data on insurance should be readily made available by NAICOM and the Nigerian Insurers Association (NIA) to sustain growth in the sector.

He said data would help to showcase where the insurance industry is currently and where it is going.
Gam-Ikon also said that continuous periodic reporting in terms of certain demographics to enable people see the opportunities, would also help in the growth.

”It is about time we see the insurance industry partnering with others to develop specific products for them and use their members to promote and sell them.

”There is still a lot of work to do, understanding that inflation and exchange rates have been at their highest during the period of review,” he said.

Another insurance consultant, Dr Samuel Onyeka, said that insurance companies are more adequately capitalised hence, the growth in income in the sector.
Onyeka, the Director, Transparent Protection Ltd. (TPL)/Gte, a Non-Governmental Organisation (NGO), said NAICOM had shown the will to enforce insurance laws by liquidating unserious companies.

He said that insurance business is becoming more competitive and companies are wary to avoid losing their customer loyalty by poor claims settlement.
”Insurance awareness is growing, especially since COVID and End SARS protests,” he said.

Our correspondent reports that NAICOM released the industry’s performance record which showed that the sector generated N726.2 billion as gross premium income at the end of the fourth quarter of 2022.

NAICOM said the result represented a growth proportion of 36.3 per cent, quarter-on-quarter and 18 per cent year-on-year.

The Commission also said that the insured made claims of N318.2 billion on insurance companies in the last quarter of 2022.

NAICOM said the claims represented a 31.2 per cent quarter-on-quarter growth from the previous quarter.

It stated that the net claims paid amounted to N244.3 billion, growing at about 18 per cent quarter-on-quarter during the same period.