Insurance sector allocates 54% of income to claims in 2023, says NIA Chairman

BY MOTOLANI OSENI

In the 2023 financial year, the insurance industry in Nigeria recorded over N1 trillion in Gross Premium Income, with insurers disbursing N536.5 billion—representing 54 per cent of their income—towards claims paid to policyholders.

This figure underscores the industry’s commitment to fulfilling its obligations, according to Mr. Kunle Ahmed, Chairman of the Nigeria Insurers Association (NIA) and CEO of AXA Mansard Insurance Plc.

Speaking during his Pre-Investiture Media Unveiling as the 26th NIA chairman at the association’s headquarters in Victoria Island, Lagos, Ahmed highlighted the significance of this substantial claims payout.

He stated that such allocations reflect the industry’s growth and dedication to honouring genuine claims. “The recent increase in claims paid demonstrates our commitment to our clients,” he remarked, while also acknowledging the need for further improvement in claims processes to bolster trust among stakeholders.

Ahmed’s administration will prioritise “Customer Centricity,” aiming to enhance customer satisfaction through initiatives designed to simplify the insurance onboarding process, improve claims handling, and ensure operational transparency. “A satisfied customer is not just a repeat client; they will become our industry’s best advocates,” he emphasised.

In a bid to modernise the sector, Ahmed announced plans for a digital transformation initiative, noting that the insurance industry has historically been slow to adopt digital solutions.

“Embracing digital innovation is essential as we aim to launch an innovation challenge that will invite solutions to streamline our processes and enhance the customer experience,” he explained.

The new chairman also plans to engage government agencies to advocate for policies that bolster the insurance sector’s role in national development. This includes collaboration on the Nigeria Insurance Reform Bill, which seeks to modernise the regulatory framework and enhance the industry’s capacity to serve the public effectively.

Ahmed stressed the importance of raising awareness about insurance, stating, “This is vital not just for our industry’s growth but for our economic development.”

He outlined plans to expand outreach initiatives, including educational programmes in schools and partnerships with media organisations to promote insurance literacy.

“By fostering a culture of insurance literacy, we can empower individuals and businesses to make informed decisions,” he concluded.