The looting and vandalism that followed the #EndSARS protest that engulfed Nigeria in 2020 are estimated to cost the nation’s insurance industry N20 billion in claims and handling expenses.
At the moment, N5 billion claims has been paid, while a lot more are being processed and adjusted, the Nigerian Insurers Association (NIA), said.
Ganiyu Musa, chairman of the NIA, made the disclosure during the Association’s 2020 annual general meeting held in Lagos.
He said despite the economic downturn occasioned by the coronavirus pandemic, which affected all levels of the economic and national life, the insurance industry grew its premium income to N540 billion, an increase of 10 percent over 2019 figures.
Musa stated that the insurance industry as a key arm of the financial services industry had its own fair share of the general economic and socio-political challenges faced by the country during the past one year.
“Persistent power outages, internecine conflicts between herders and farmers, the menace of kidnappers and bandits, rising insurgency in the northeast, poor infrastructural facilities, galloping inflation, rising unemployment, increasing poverty levels, and fall in exchange rate continue to challenge businesses resulting in high cost of operations,” according to Musa.
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He stated that notwithstanding the situation, insurance companies continue to discharge their obligations as financial intermediaries and restorers of businesses in line with their statutory mandate.
He stated further that, in line with its core mandate, the Association was working closely with the National Insurance Commission (NAICOM), the Nigerian Council of Registered Insurance Brokers (NCRIB), and other key stakeholders to promote the business of insurance and increase its contribution to national GDP.
“It is expected that some of these initiatives will lead to increased insurance penetration and density.
“It is worthy of note that one of the strategic objectives articulated during the development of the Association’s industry transformation roadmap in 2017 is to build stronger and resilient insurance and reinsurance companies,” he said.
According to Musa, it remains the firm belief of the Association that appropriate measures will be taken by all insurance companies that will lead to the emergence of a strong and virile industry capable of competing in the global insurance market.
On the Consolidated Insurance Bill, he said, the Association is monitoring developments to ensuring that the new insurance law aligns with global best practice and promotes the business of insurance in the country.
