In a bid to compensate insured Nigerians for the misfortune they experienced in 2018, ten underwriting firms have paid the claims of N78.6 billion.
The firms under review are: Leadway Assurance Company Limited, AIICO Insurance Plc, FBN Insurance Limited, Consolidated Hallmark Insurance Plc, Sunu Assurance Nigeria Plc, African Alliance Insurance Plc, Staco Insurance, Nigerian Agricultural Insurance Corporation (NAIC), Universal Insurance Plc, and NSIA Insurance Limited.
Findings revealed that these underwriting firms recorded an improvement in claims payment under the 2018 operating year as against 2017 and this increase is, as a result of the growth in replacement value of insured assets, as insurers had to pay through their nose to replace insured assets when risks arise especially when the premium paid is paltry when juxtaposed with the claims value.
Another factor responsible for this increase in claims payment, is the improved awareness on the need of policyholders to file for claims. Also, most of the underwriting had to surrender about 70 per cent of their income to pay these claims, hence, leaving them with just 30 per cent profit.
In the order of firms which paid the highest claims in 2018, Leadway Assurance Company Limited takes the lead with the payment of N33.8 billion claims to policyholders, while it paid N27.4 billion claims in its 2017 financial year. Following suit is AIICO Insurance Plc, as its gross claims increased by over 25 per cent from N23.3 billion in 2017 to N29.1 billion in 2018. From this amount, about 76 per cent was for benefits and claims payment in the Life business with the remaining 24 per cent incurred in the Non-Life business.
Commenting on this, the Managing Director/CEO, Edwin Igbiti, said that insurance companies are in the business of paying claims, hence, bringing relief to clients in times of losses.
He noted that as its company continues to grow, claims expenses will grow accordingly also, adding that, sound reinsurance arrangements (for Non-Life) and conservative reserves (for Life benefits & claims) have been put in place to moderate impact on the company’s statement of financial position.
FBN Insurance Limited bags the third position, as it promptly paid N4.8 billion claims to its policyholders who suffered insured risks in its 2018 financial year, which is a 66 per cent increase from N2.9 billion in 2017.