By David Akinmola
The Nigerian Insurers Association (NIA) has called on policyholders whose insured assets were damaged by the recent flooding in Lagos to notify their insurers and commence the claims process.
This stakeholders warned that the disaster has once again exposed Nigeria’s low insrance penetration and growing vulnerability to climate-induced losses.
With insurance penetration still below one per cent Nigeria, industry’s experts warned that the latest flooding has highlighted the country’s huge protection gap, leaving thousands of households and small businesses to bear the full cost of losses without financial compensation.
Speaking on the development at the weekend, NIA Chairman, Mrs. Ebelechukwu Nwachukwu, expressed sympathy to families who lost loved ones and commiserated with individuals and businesses affected by the flooding.
She urged policyholders with valid insurance cover to promptly contact their insurance companies, brokers or agents and submit the necessary documentation to enable loss assessment and speedy settlement of claims.
According to her, member companies of the association remain committed to settling all valid claims in line with the terms and conditions of insurance policies.
“Insurance remains one of the most effective financial safeguards against the devastating economic consequences of natural disasters. We encourage all affected policyholders to notify their insurers promptly so that the claims process can commence without unnecessary delay,” she said.
Nwachukwu noted that while proper environmental sanitation, responsible waste disposal and regular clearing of drainage channels remain essential in reducing flood risks, such preventive measures cannot completely eliminate natural disasters.
She described insurance as a critical pillar of economic resilience, saying it enables individuals and businesses to recover financially after unforeseen losses and resume normal economic activities.
The NIA chairman, who is also the Managing Director/Chief Executive Officer, Rex Insurance Limited, reaffirmed that industry’s commitment to the prompt settlement of genuine claims and assured policyholders of continued support throughout the recovery process.
Speaking on the development, insurance and risk management expert, Dr. Pius Apere, said the recurring floods should serve as a wake-up call for individuals, businesses and governments to prioritise risk financing through insurance rather than relying solely on emergency relief after disasters.
According to him, the increasing frequency of the flooding linked to climate change has made insurance an essential component of financial planning for households and businesses.
“Climate-related disasters are becoming more frequent and more costly. Unfortunately, many Nigerians only appreciate the value of insurance after suffering losses.
Beyond responding to disasters, we must build a culture of preparedness through adequate insurance protection,” he said.
Apere added that insurers have continued to strengthen their capacity to settle genuine claims, but stressed that public confidence would improve further through sustained claims payment, consumer education and greater awareness of available insurance products.
Also commenting, economist and financial analyst, Celestine Ukpong, said the economic consequences of flooding extend beyond damaged property, affecting productivity, employment and business continuity.
He noted that insurance remains one of the most effective tools for mitigating such risks, particularly for Small and Medium-Sized Enterprises (SMEs), many of which struggle to recover after disasters.
Industry operators said the latest flooding reinforces the need for greater collaboration between insurers, governments, environmental agencies and urban planners to strengthen disaster risk management, improve climate-risk insurance products and deepen insurance penetration across the country.
