BY NKECHI NAECHE ESEZOBOR––The Nigerian insurance industry on Monday said the industry paid a total of N207,439,667billon as claims to policy holders as at the end of December 2018.
The Director General of Nigerian insurers Association (NIA), Yetunde Ilori, disclosed this today during an 2nd NAICOM interactive session for major insurance consumer held in Lagos that the industry claims payment rose from N142,830,122 billion in 2017 to N207,439,667billon in December 2018.
Ilori, who was presented by the Director of operations, NIA, Lanre Ojuola, said out of N413,013,842billion generates as gross written premium by the industry in 2018, 50.23 percent of the funds generated was used to settle claims to policy holders.
According to her, the industry also spent 39.13 percent out of N365,057,394billon generated as gross premium written in 2017 to settle claims to,policyholders.
Speaking further on claims, the president, Chartered Insurance Institute of Nigeria (CIIN), Eddie Efekoha, said going forward, operators, reinsurance and consumers will have to state what they are underwriting so that when it is time for claim payments, all parties will know how much is due to them.
The president who also doubles as MD/CEO Consolidated HallmarkmInsurance Plc, said “when it comes to claim payments, we have noticed that while the local operators may fulfil their obligation, reinsurance or foreign operators may delay in delivery their obligation.”
The CIIN Boss urged consumers to work with brokers who know the insurance business very well, to avoid misinterpretation of contracts.