By David Akinmola
The Nigerian Insurers Association (NIA) has stressed the need for stakeholders to explore the option of digital collation to track underwriting firms without paying claims to policyholders when the need arose in the industry.
This was disclosed at the investiture of the 26th Chairman of the association, Kunle Ahmed, in Lagos, saying that the digital collation and tracking of claims payment would delight customers and reduce insurance fraud.
He submitted that insurance companies only issue a promissory note after consummating a transaction, the test of the promise happens only when a claim is reported, noting that the issue is no longer whether insurance companies pay claims or not, as in 2023, the industry paid N536.5 billion in claims, a 54 per cent growth over the claims paid in 2022.
He said despite the feat made on claims payment, there is still some work to be done because companies would be unable to maximise the budget on publicity and media campaigns without paying attention to the ease of making a claim and the improvement of the claim process.
“We will work with market stakeholders to self-regulate and enforce market best practices amongst members from the point of on boarding a client to claims payment.
“We must continually look for a reason to pay a claim, rather than look for a reason not to. In addition, we will also be focussed on the following:
Activities and programmes that seek to always put claims payment on the front burner, including creating, at different levels of NIA, committees that will be tasked with discussing and recommending improvements and resolving claims disputes with the insuring public and amongst members.
“Collaborate with all stakeholders, especially, the Nigerian Council of Registered Insurance Brokers (NCRIB) to ensure the provision of full underwriting information. Inadequate information and lack of clarity at the point of onboarding the client is a precursor for a conflict at the point of claim.
“Ensure standardisation of pricing to the extent that each client is charged the price that is commensurate with their risk. Detailed information about a risk including the survey and the implementation of the survey recommendations can potentially attract a pricing that is fair to all.
“Collaborate with industry stakeholders to ensure Environmental, Social & Governance (ESG) is just not only a declaration in our annual reports, but its principles are integrated into our underwriting guidelines.
“Research and collaborate with stakeholders both locally and internationally on how to mitigate the effect of inflation and other vagaries of the economy on claims payout,” he posited.
Ahmed called on all stakeholders to support his administration in taking the insurance industry to lofty heights, noting that insurance products remain one of the most tested and trusted instruments to mitigate risks when the economy is buoyant, especially when there are economic challenges.
