*Settled 92.3 per cent reported motor claims
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Chuks Udo Okonta
At a time Nigerians, especially traders and shop owners are being implored to take fire insurance policy in securing their wares and properties, available data has revealed that only 46.3 per cent of reported inferno got claims payment in the fourth quarter of 2022, leaving 53.7 per cent unsettled.
According to data obtained from National Insurance Commission (NAICOM) fire claims was the least among settled reported claims in the non-life business.
NAICOM stated that in motor business 92.3 per cent of reported claims were settled by insurers in the quarter.
An Expert who doesn’t want to be named told Inspenonline that the position of fire insurance, may be as a result of technicality of the business, adding that there are many factors which may lead to denial of fire claim.
According to him, fire insurance requires the services of insurance brokers who understand the clauses and exceptions.
He urged insuring public to always engage services of brokers when taking fire insurance so that their claims would be honoured at the time of risk.
According to NAICOM insurance claims reported during the fourth quarter stood at N318.2billion representing a 31.2 per cent QoQ growth.
The insurance regulator attributed the reported claims to growing awareness
and market expansion as well as consumer’s confidence.
It maintained that in a similar pattern, the net claims paid were reported at N244.3 billion, growing at about 17.9 per cent QoQ during the same period.
NAICOM posited that insights into the non-life segment showed that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 per cent signifying a nine points improvement as against its prior position and that Fire Insurance was the least at 46.3 per cent, which is the only class below average proportion.
It said all other portfolios of General Accident Insurance got 80.7 settlement; Oil & Gas, 51.6 per cent; Marine & Aviation, 74.4 per cent and miscellaneous Insurances, 86.1 per cent recording a proportion above the average, of paid claims against gross claims reported.
It said Life Insurance business on the other hand reported two points less in comparison to the position held in the prior period of 94.6 per cent of net claims paid compared
to total claims reported during the same period of 2021.
“The data reveals an impressive development with regards to claims settlement in the non-life business with a record 63.7 per cent compared to the previous period 46.9 per cent.
“It therefore, indicates that despite operational challenges, the claims settlement experience of Insurers is improving,” NAICOM submitted.
