• Business - Companies
  • Updated: March 27, 2023

Insurance: Experts Laud Consistent Increase In Claims Payment

Insurance: Experts Laud Consistent Increase In Claims Paymen

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

The experts who spoke with the News Agency of Nigeria (NAN) in Abuja on Monday attributed the successes to improved policyholders’ knowledge of claims processes and increased awareness campaigns.

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

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 the 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 a better insurance experience.

”Policyholders now have a 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 to 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, which has also contributed to, the growth in income in the sector.

Onyeka, the Director of 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 the 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.

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