By David Akinmola
As Nigeria’s insurance industry adjusts to stricter capital requirement under the Insurance Reform Act 2025, Mutual Benefits has said N5.94 billion claims paid in January this year, reinforcing the sector’s push to rebuild trust and deepen insurance penetration through stronger balance sheets in the market.
The insurer revealed this at the weekend that N3.43 billion was paid under its General (Non-Life) portfolio, while N2.51 billion covered Life business, including Group Life and Retail Life policies.
The Managing Director, Mutual Benefits, Olufemi Asenuga, described claims settlement as the ultimate proof of an insurer’s credibility.
“Insurance is built on trust. Ability to settle over N5.9 billion in claims in one month demonstrates not only financial strength, but also deep commitment to policyholders we do not just issue policies, we stand by promises,” he said.
With recapitalization expected to raise minimum capital requirements across life and non-life segments, industry stakeholders argue that well-capilised insurers will be better positioned to boosting consumer confidence.
Industry analysts say such strong claims performance aligns with the recapitalization objectives embedded in the new reform regime, which aims to strengthen insurers’ balance sheets, improve solvency margins and ensure faster settlement of valid claims a longstanding concern among policyholders.
They noted that low insurance penetration in the country has historically been driven by asceticism around claims payment. Demonstrable liquidity and compliance with regulatory capital benchmarks, they say, could help reverse that perception.
The insurer, which operates across Life and General Insurance segments, said it remains fully compliant with capital requirements set by the National Insurance Commission (NAICOM). The January payout, the underwriter added, reflects prudent underwriting standards, disciplined risk management and an efficienct claims administration framework.
As insurers adjust to the new capital regime, stakeholders believe that stronger balance sheets and improved governance could catalyse higher insurance uptake among individuals and businesses, ultimately expanding penetration and reinforcing the sector’s role in national economic stability.
