Insurance firms paid N747.06 billion claims within five years to organisations and individuals who suffered losses, The Nation has learnt.
A report by the Nigerian Insurers Association (NIA) revealed that in 2015 non-life insurers paid N54.65 billion, while life operators paid N50.57 billion.
Further breakdown showed that non-life operators paid N57.76 billion: life operators, N61.87 billion and in 2017, non-life 70.52 billion and life N72.31 billion.
In 2018, non-life insurers paid N98.70 billion; life operators, N94.78 billion and in 2019, non-life N78.72 billion and life operators N107.17 billion.
Meanwhile, the National Insurance Commission (NAICOM) has said it would continue to promote economic growth by ensuring insurers meet their claims obligations.
The Commissioner for Insurance, Sunday Thomas, who stated this at a forum in Lagos, said the commission would be profiling insurance companies with huge unsettled claims for necessary regulatory action.
He noted that the era of huge backlog of claims should no longer be associated with insurance companies.
He urged companies that are responsive to the plight of their clients in prompt settlement of claims to sustain the good business conduct.
Thomas urged operators in the industry to strengthen their human and financial capital for effective participation in big ticket risks, stressing that it has been observed that the gains of domestication policy of the government as enshrine in the Nigeria Content Development Act 2010 is gradually losing its meaning for the insurance sector.
He said: “More businesses especially in the oil and gas and the Aviation sectors are now been re insured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry. These are the areas the industry can impose itself on the economy through the control of funds for national development.’’
“The Industry must invest handsomely in technology, one of our key drivers for developing the market. The institutions should be prepared to digitalise their processes, procedures and systems in order to make their operations seamless and real time. The Commission is investing heavily in automating its processes and expects nothing less from the insurance institutions. An industry Information Technology Guideline has been issued for the operators and the Commission requires your support and cooperation for effective compliance,” he said.
