..As industry battles low penetration, weak consumer confidence
By Favour Pius
Persistent distrust arising from delayed and disputed claims settlements has continued to undermine insurance acceptance in Nigeria, industry stakeholders have said, warning that operators risk deeper public apathy unless claims payment becomes faster, more transparent and customer-focused.
The concerns emerged as Mutual Benefits Assurance Plc announced the payment of over N5.5 billion in laims to policyholders in April 2026, a development industry players described as a positive signal for sector struggling with low penetration and weak consumer confidence.
Nigeria’s insurance penetration remains below one per of Gross Domestic Product (GDP), one of the lowest in Africa, with stakeholders attributing the poor performance largely to public distrust, low awareness and negative experiences around claims settlement .
Operators argued that while awareness campaigns remain important consistent payment of genuine claims remains the strongest factor capable of convincing Nigerians about the value of insurance.
Breakdown of the claims settlement by Mutual Benefits showed that N3.67 billion was paid under its General Business portfolio covering motor, engineering, marine and related risks, while N1.91 billion was disbursed under Group Life and Retail Life policies.
“In Nigeria today, many people still see insurance as a product that does not work because of past experiences involving delayed or unpaid claims. The moment insurers consistently honour obligations promptly, public confidence improve naturally,” he said.
According to him, prompt claims settlement has the capacity to increase policy renewals, attract first-time insurance buyers and improve the sector’s contribution to the economy.
Stakeholders noted that in more developed insurance markets, public confidence is driven not by advertising but by the certainty that claims will be paid when losses occur.
Managing Director of Mutual Benefits Assurance Plc, Olufemi Asenuga, described insurance as a business built fundamentally on trust and reliability.
“Insurance is ultimately about trust. Our relevance is not measured merely by policies sold, but by our ability to stand by customers when they need us most,” he said.
He added that the company’s claims culture reflects its commitment to customer service, disciplined underwriting and operational efficiency.
Policyholders who recently received claims payments from the company also commended its responsiveness during difficult periods, particularly in handling motor and life insurance claims.
Industry analysts said operators that prioritise transparent and efficient claims settlement are likely to emerge stronger as the sector undergoes recapitalisation and regulatory reforms ahead of the July 2026 deadline set by the National Insurance Commission.
They further argued that improved claims culture across the industry could significantly deepen insurance penetration, strengthen financial inclusion and increase the sector’s contribution to national economic development.
