By David Akinmola
Insurance industry stakeholders have renewed calls for operators to prioritise prompt claims settlement as part of efforts to rebuild public confidence, deepen insurance penetration and increase the sector’s contribution to Nigeria’s economy.
The appeal comes amid ongoing recapitalization discussions and reforms within the insurance industry aimed at strengthening operators’ financial capacity, improving service delivery and restoring trust among policyholders.
Analysts said the inability of some operators to settle claims promptly over the years has contributed significantly to low insurance adoption in the country, despite growing awareness of risk management and financial protection.
Speaking on the development at a forum yesterday in Lagos, a Lagos-based insurance and financial services, Chinedu Okafor, said prompt claims payment remains the strongest tool for rebuilding confidence in the sector.
According to him, insurance companies that consistently honour claims obligations without unnecessary delays would not only retain customers but also attract new policyholders and improve the industry’s overall relevance in the economy.
He added that increased trust in insurance products could stimulate investment, support business continuity and expand the sector’s contribution to national economic growth.
Also speaking on the importance of prompt claims settlement, Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, said claims payment remains the trust test of insurance credibility and sustainability.
Ahmed noted that insurers must continue to strengthen customer confidence through timely and transparent settlement of genuine claims, stressing that public trust is critical to expanding insurance penetration in the country.
According to him, the industry’s long-term growth would depend not only on recapitalization and regulatory reforms, but also on operators’ ability to consistently fulfill obligations to policyholders.
The renewed industry focus followed disclosure by Mutual Benefits Assure Plc that it paid over N5.5 billion on claims to policyholders in April 2026.
The company said the payout covered both General and Life Insurances, with N3.67 billion disbursed under the General Business portfolio and N1.91 billion paid under Group Life and Retail Life policies.
The claims settlements covered motor, engineering marine, life protection, deth benefits and other insured risks.
Speaking on the development, the Managing Director, Mutual Benefits Assurance Plc, Olufemi Asenuga, said insurance is fundamentally built on trust and the ability of operators to stand by customers during difficult periods.
He noted that the company’s consistent settlement of genuine claims reflects its disciplined underwriting structure operational efficiency and commitment to policyholders across the country.
Industry observers said operators must increasingly focus on customer experience, transparency and digital innovation if the sector is to achieve meaningful growth and wider acceptance among Nigerians.
Nigeria’s insurance penetration remains among the lowest in Africa, with experts attributing the challenge to low awareness, poor financial literacy and lingering concerns over claims settlement practices.
Operators, however, expressed optimism that improved service delivery, stronger regulation and sustained public education would gradually improve confidence and position the industry for long-term growth.
