Insurers prepare for multi-billion Naira flood claims

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Chuks Udo Okonta

With over 500 persons died, 45,249 houses totally destroyed and 70,566 hectares of farmlands damaged, insurance companies are in for large claims settlement to policyholders that are affected by the flood ravaging parts of the country.

Investigations conducted by Inspenonline revealed that insurance operators especially those underwriting agric business are anticipating claims from the disaster.

The Managing Director, Universal Insurance Plc, Dr. Ben Ujoatuonu, told this medium that his company is keenly monitoring the situation, adding that the firm is yet to receive any claims report from its insured.

He noted that definitely claims would arise from the disaster and his firm is ready to settle all genuine claims arising from the flood.

Assistant General Manager Corporate Services, Nigerian Agricultural Insurance Corporation (NAIC), Magdalene Omosimua, said this is no reported claims as the moment, adding that claims would be reported when the flood is over.

She noted that the firm would continue to keep to its responsibilities toward those that insured with it.

Insurance companies in year 2020, paid N1.64 billion claims to practitioners of commercial and subsidized agriculture that suffered losses.

Data obtained from the Nigerian insurers Association (NIA) revealed that operators of commercial agriculture got N836.24 million claims while those in the subsidized business got N857.08 million, amounting to an aggregate of N1.64 billion.

It was also gathered that practitioners from Abuja got the largest claims amounting to N442.20 million, followed by those in Lagos with N253.27 million and Kogi, N120.86 million.

On premium generated, insurers pooled gross premium written of N7.46 billion from agric business, with Abuja contributing the highest which was N4.52 billion, followed by Lagos, N540.00 million and Zamfara, N348.91 million.

Chairman of NIA, Ganiyu Musa, said the industry’s Gross Premium Written (GPW) in 2020 stood at about N508 billion, while claims paid by member companies amounted to about N224 billion which was 44 per cent of the total industry premium.

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