Insurance Industry Boost Policyholders’ Confidence, Pays N242.6bn Claims In Q3 2022
The Nigerian insurance Industry has continued to demonstrate its business obligations especially in the area of prompt payment.of genuine claims to boost policyholders’ confidence in the industry.
The industry, during the third quarter of 2022, paid a total gross claims of N242.6 billion as reported by the market.
The figures according the the National Insurance Commission’s (NAICOM’s) bulletin of Insurance market third quarter 2022, was slightly lower compared to the corresponding period of 2021, signifying a decline of -2.3% in the total claims reported by policyholders.
The ratio of total claims to gross premium however, stood at about forty-six per cent during the current period.
The net claims paid on the other hand stood at about N207.2 billion, signifying an 85.4% of all gross claims reported during the period.
The Life Insurance business segment recorded a near perfect point of 95.0% claims settlement against all the reported claims while non-life segment stood generously at above seventy (72.4%) per cent during the same period.
The array of proportional claims settlement took a direct reflection of the market premium retention as Motor Insurance retained its lead, posting a claims settlement ratio of about ninety one per cent.
This is followed by Miscellaneous insurances reporting about eighty one per cent as paid claims ratio to all reported claims during the period while General Accident (74.4.%), Marine & Aviation (74.3%) and Fire Insurance (59.6%) trailed in that order.
The Oil & Gas business stood out as the most improved portfolio in this respect at about sixty five (65.3%) per cent of claims settlement ratio, an increase of forty-one points compared to its position of 23.9% recorded in the corresponding period of 2021. Similarly, the claims settlement ratio of the life business stood at 95% while the aggregate industry average was recorded at 85.4% during the quarter.
The experience in Oil & Gas corner of the market with respect to claims settlement NAICOM stated, could be attributable to the increasing capital and, underwriters’ growing confidence and dexterity in the market.
Emphasizing the importance of claims payment in insurance business, NAICOM noted that “the insurance claims component defines the essence of insurance business as a whole and indeed a major factor in consumer confidence building.”
