Nigerian Loss Adjusters Secure Professional Fee Increase After Three-Decade Stagnation
Nigerian loss adjusters have secured a long-awaited upward review of their professional fee structure, ending a 33-year period of stagnant rates that had significantly hampered the sub-sector’s operational efficiency. The adjustment, finalized in early 2026 following extensive negotiations between the Institute of Loss Adjusters of Nigeria (ILAN) and the Nigerian Insurers Association (NIA), marks a strategic shift toward ensuring the sustainability of the claims settlement process. This revision is intended to align professional compensation with current macroeconomic realities, particularly the high cost of logistics, specialized equipment, and technical expertise required for modern risk assessment.
The 33-year delay in fee adjustment had created a significant disparity between the rising costs of operation and the fixed income levels of adjusters, who serve as critical intermediaries in the insurance value chain. Since the last major review in the early 1990s, the Nigerian economy has undergone several cycles of currency depreciation and inflationary pressure, which eroded the profit margins of loss-adjusting firms. By implementing a more cost-reflective fee scale, the industry aims to attract and retain high-level talent, thereby improving the speed and accuracy of claims investigations—a fundamental requirement for maintaining consumer trust in the insurance market.
From a macroeconomic perspective, a robust loss-adjusting sub-sector is essential for Nigeria’s broader financial stability and its $1 trillion GDP target. Precise loss adjustment ensures that insurance payouts are fair and fact-based, preventing both under-compensation of policyholders and the financial bleeding of insurance companies through fraudulent or exaggerated claims. As Nigeria seeks to deepen insurance penetration, which currently remains below 1 percent of GDP, the professionalization and adequate funding of claims adjusters act as a “credibility anchor” that encourages large-scale industrial and commercial entities to take up comprehensive coverage.
The fiscal implications of this fee boost are expected to ripple through the insurance ecosystem. While insurers will see an increase in administrative costs related to claims handling, the long-term benefit lies in the reduction of “leakages” caused by substandard loss assessments. Furthermore, the move aligns with the National Insurance Commission’s (NAICOM) drive for market development and the enforcement of international best practices. Improved revenue for adjusting firms will likely facilitate the adoption of digital tools, such as drone surveillance and remote sensing technology, which are increasingly necessary for assessing large-scale industrial risks in the energy and manufacturing sectors.
Historically, the Nigerian insurance sector has struggled with a “trust deficit” largely driven by delays in the settlement of valid claims. By empowering adjusters with a sustainable fee structure, the industry is addressing one of the structural bottlenecks that contributes to these delays. This reform is part of a broader “market deepening” strategy intended to modernize the financial services landscape, making it more resilient to the “security premium” and operational risks that characterize the current Nigerian business environment.
As the new fee structure takes effect throughout the 2026 fiscal year, the focus will shift to the implementation of service-level agreements that link the higher fees to improved performance metrics. Industry analysts suggest that this consolidation of the loss-adjusting profession will lead to a more competitive and transparent market, where firms are incentivized to invest in specialized training and forensic accounting. Ultimately, the successful resolution of this decades-long fee impasse represents a significant milestone in the evolution of Nigeria’s risk management infrastructure, supporting the nation’s path toward a more integrated and stable digital economy.
