Nigerian loss adjusters have secured long awaited revision of their professional fee structure, marking the first major review in over three decades.
Revised 33 years ago in 1992, the new fee scale is expected to improve earnings, strengthen operational capacity, and enhance service delivery across the insurance claims value chain.
Ikechukwu Udobi, president of the Institute of Loss Adjusters of Nigeria (ILAN) who made the disclosure during an interview in Lagos.
He said the adjustment would support training, boost professionalism, and position adjusters to handle increasingly complex insurance risks, and in the long run boost consumer confidence.
Udobi while reviewing his vision and outlook for the New Year outlined a comprehensive reform agenda aimed at strengthening the loss adjusting profession, improving members’ earnings, and positioning the institute for long-term growth.
He said his administration assumed office with a clearly defined vision anchored on institutional development, digital transformation, and professional capacity building.
“We assumed office with a clear vision to guide the administration. From the onset, we outlined key priorities that would drive our leadership agenda. These priorities include building assets through relocation, improving internal processes, developing a strategic roadmap, driving digital transformation, and upgrading the institute’s overall status,” he said.
A central aspect of the reform agenda, according to Udobi, is the review of professional fees for members, which he described as critical to strengthening professional independence and raising industry standards.
Read also: Loss adjusters push for better claims management, service fees for efficiency
“We have now reached an advanced stage in this process. The Nigerian Insurers Association has issued directives to its members on the new agreed fee scale. Both parties have reached a final agreement, with only administrative sign-off remaining. While the outcome may not fully meet all our initial expectations, it represents significant progress,” Udobi said.
Beyond fee restructuring, Udobi disclosed that the institute is intensifying efforts to secure a permanent and befitting secretariat, with funds already earmarked for the project.
“Securing a new location remains a major focus of this administration,” he noted.
The ILAN president also revealed plans to develop a long-term strategic roadmap to guide the institute’s growth over the next decade and ensure leadership continuity.
“The objective is to ensure leadership continuity and prevent policy reversals whenever new leadership emerges. Developing the roadmap collectively ensures that future administrations remain aligned with long-term goals,” he added.
Udobi further highlighted the importance of strengthening collaboration with key industry stakeholders, including the Nigerian Insurers Association (NIA), as part of broader institutional growth efforts.
Despite prevailing economic challenges, Udobi expressed optimism about improving operating conditions for loss adjusters, noting that the newly approved fee scale would enhance professional stability and capacity development.
“One key benefit of the new agreement is that it enhances the capacity of adjusters to invest in professional training and skill development. Increased revenue will allow firms to train personnel and strengthen technical expertise, which will ultimately benefit the entire insurance industry,” he said.
He disclosed that the revised fee structure has already taken effect and will be subject to periodic reviews to reflect inflationary pressures and changing economic realities.
On the ongoing recapitalisation of insurance companies, Udobi said the exercise would expand insurers’ capacity to underwrite larger and more complex risks, thereby increasing the technical demands on loss adjusters.
“As insurers assume larger risks locally, some risks previously handled overseas will now be managed within Nigeria. Consequently, Nigerian adjusters will play a more prominent role in handling such claims, making capacity building and continuous professional development essential,” he explained.
To prepare members for these emerging industry demands, Udobi said ILAN has designed several specialised training programmes and is leveraging experienced professionals within the industry to mentor younger practitioners.
“It is important to recognise that the profession still has a pool of experienced experts who are willing to mentor and support younger practitioners. Through this collaboration, we are expanding training opportunities and improving the competence of our members,” he said.
Addressing longstanding concerns around claims settlement, Udobi acknowledged that delays in claims payments have historically affected fee payments and industry relationships but noted that regulatory reforms are improving the situation.
“The current regulatory focus has placed strong emphasis on improving claims settlement processes, recognising that claims payment is central to maintaining public confidence in insurance,” he said.
He added that the revised regulatory framework now requires professional fees to be settled alongside claims payments within defined timelines, a development he said would enhance transparency and trust across the insurance value chain.
“The regulator has demonstrated strong commitment to enforcing these provisions, which is expected to improve transparency, efficiency, and trust across the insurance value chain,” Udobi concluded.
