Insurance

Economic impasse pushes insurance claims up

Efekoha

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Chuks Udo Okonta

The economic situation has forced insurance companies to pay out more claims this year compared to previous years, the Chairman, Nigerian Insurers Association (NIA), Eddie Efekoha, has said.

He said this at a media parley in Lagos, adding that the exchange rate has pushed up insurance claims as the premium of insurance policies which claims are presently settled, were paid when the exchange rate was low.

He maintained that the economic recession has impacted negatively on insurance business, stressing that most people now place insurance last in their scale of preference.

Efekoha said insurance operators would continue to live up to their claims responsibilities. He noted that insurance should be considered first in decision making, especially now that it is difficult to replace lost items due to high cost.

He also called on the government to leverage insurance in finding way out of the recession.

It was gathered that the recession has forced many insured to consider insurance as resort of making quick money to meet their financial maladies.

According to the Director-General NIA, underwriters in recent times have been contending with the challenge of fake claims, stressing that to outsmart the fraudsters, operators now carry out adept investigations to ascertain genuine claims.

He noted that the amidst challenges, operators are also living up to their responsibilities in paying genuine claims, stressing that the vices been perpetuated by fraudsters would not deter insurers in settling claims of those who actually needed to be indemnified.

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