The Nigerian Insurers Association, NIA, said Federal Ministries, Departments, and Agencies (MDAs), workers and asserts are yet to be insured by the government in 2025.
Kunle Ahmed, Chairman NIA, disclosed this during a quarterly briefing with Nigerian Association of Insurance and pension editors in Lagos, this he attributed to unreleased budgetary allocations for MDAs.
He said “based on the latest reports, most Federal Government MDAs are facing substantial delays in the release of budgetary allocations for the renewal of their insurance policies for 2025.
According to him, some MDAs’ insurance coverage has already expired, leaving them without protection. Others are reportedly pleading with insurance companies to maintain coverage while they await the release of funds.
He however warned that “this request cannot be accommodated by any insurance company as doing this will be against the “No Premium, No Cover” rule, which NAICOM has been strictly enforcing since 2013.
He noted that “As operators, we are deeply concerned that the delay in releasing funds may result in government workers and assets remaining uninsured, leaving them vulnerable to financial losses in case of unforeseen events. The industry awaits the release of these allocations to ensure continuity of cover and adherence to the “No Premium, No Cover” principle.”
The NIA boss was of the view that the continuous protection of government’s human resources an assets, which potential can contribute to the economic development of the country remains operators priority as an industry.
On name and shaming of companies with outstanding claims and the details of these complaints, he said “ he said the National Insurance Commission, NAICOM, is promoting transparency and demonstrating commitment to protecting the interests of policyholders.
“It 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.
“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.
“We 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 can help policyholders who may have felt helpless in the face of delayed or denied claims.
“The publications can 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. This allows NAICOM to develop targeted regulatory interventions to address these underlying problems.”
On Industry Performance, he said at the end of of Q3 2024 the industry achieved a robust growth in gross premiums with 61% year-on-year increase in Q3 2024, reaching N1.2 trillion.
This growth according to him was largely driven by the non-life insurance sector, which constituted approximately 69% of the total premium income.
He said 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 reported 45% quarter-on-quarter increase in Q3 2024 while 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.”
