Terrorism, flood claims cost Nigerian insurers N1.417bn

Figures from the Nigerian Insurers Association, NIA, has revealed that insurance companies in the country paid a total of N217.8 million as terrorism claims in 2018

Also, in the course of the same year, insurance companies in the country paid N1.2 billion to settle claims arising from flooding.

The claims payment for terrorism in 2018 is seen as an impressive improvement on the general apathy of the insurance industry towards terrorism cover. It is believed to be too risky and highly volatile as a single incident could erode a company’s profit and capital.

According to the figures contained in the NIA digest, Axa Mansard Insurance Plc paid the highest terrorism claim of N167.9 million, while the rest was settled by Continental Reinsurance Plc.

Axa Mansard paid the terrorism claim to Dangote Cement Plc for the incident at its Ibese Plant.

Meanwhile for flood claims, Prestige Assurance Plc paid the largest claims of N55.48 million to D2H Services Limited & Associates.

The NIA further disclosed that the industry recorded a gross premium income of N364.7 billion while net premium income stood at N258.1 billion in the year under review.

Nigerian insurers, according to the NIA Chairman, Mr. Tope Smart, has been responsive in meeting genuine claims responsibilities, stressing that the industry will continue to honour the payment of all genuine claims.

Also, the Director-General of NIA, Mrs. Yetunde Ilori, called on the insuring public to take advantage of conflict resolutions bodies set up by the industry to resolve all unpaid claims issues.

According to her, the NIA in a bid to ensure the public are not denied claims, set up a complaints bureau, adding that the National Insurance Commission (NAICOM) also has a complaint bureau for settlement of claims disputes.