Insurance industry in Nigeria has continued to play its role of protecting and helping other business survive through effective risk management. This may sound patronizing, but that is the reality when you consider the amount of claims paid out annually by insurance companies to businesses and individuals that suffer one form of loss or the other.
Within a period of five years between 2014 and 2018, insurance companies paid out a whopping N648.16 billion in claims, made up of N315.47 billion in life business and N332.69 billion in non- life business, according to figures obtained from the Nigerian Insurers Association(nia)
The breakdown of the claims shows that life operators paid N35.95 billion in 2014; N50.57 billion in 2015; N61.87 billion, in 2016; N72.30 in 2017; N94.78 billion in 2018; while non-life operators paid N51.06 billion in 2014; N54.65 billion in 2015; N57.76 billion in 2016; N70.52 billion in 2017 and N98.70 billion in 2018.
Meanwhile, out of N490 billion generated in 2019, the industry paid out N200 billion, underscoring its commitment to meeting clients expectation. Though there is still room for improvement, a lot has changed in terms of claims payment to the benefit of the consumers.
This insurance industry supporting the economy is further substantiated when you consider that over N4.5 billion claims has been paid by insurance companies to 2000 businesses and individuals that encountered losses as a result of the #ENDSARS protests that happened across the country in 2020, while more claims are still being expected, according to Ganiyu Musa, chairman of Nigerian Insurers Association (NIA)
Insurance can help you protect your family…
You have worked so hard to build a solid financial footing for you and your family, so you want to be sure that everything is protected.
Accidents and disasters can and do happen, and if you aren’t adequately insured, it could leave you in financial ruin. You need insurance to protect your life, your income, and to keep a roof over your head.
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When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance is there to provide protection for you, your investment and your business
It gives you peace of mind and you know that if anything happens to you, your family or your business will be financially secure.
And you can actually insure almost anything under the sun, but certain things absolutely need to be properly insured.
Take out these…
Supposing you are the breadwinner of your family, providing food on the table, paying children’s school fees, and probably servicing the mortgage you bought for the family apartment, then you must think what happens to your dependants when you are not there.
This is the reality of life that stares in the face, which unfortunately many ignore only to realise when it is too late. Yes, death is a reality and inevitably what no one has power to control when it will come.
To be on the safer side, and as a sign of true love for your family and those who depend on you for survival, it is critical that you arrange for certain insurance policies for their protection.
The benefit is that in the event of the unexpected happening, you are rest assured that your dependants could continue on the standard of living they have been used to; that they are able to continue their education to the level you had wished for them, and that they will not be chased away from their living apartment because they could not service the mortgage.
Experts in insurance taking cognizance of the reality of life have come up with some insurance products that could suit every breadwinner in the family, either as a father or mother.
The products include a life insurance policy, credit insurance policy, and personal accident policy, and the beauty of these products are that they are affordable than you can imagine.
George Onekhena, CEO, Crown Height Consulting Services who is always passionate about providing for your dependants in the case of the unexpected said, life insurance is a key financial planning tool. He said “it is wickedness not to provide for your dependents, and death comes and they are now exposed.
Onekhena stated that a simple term life insurance is enough to ensure that your dependents sustain their living standard and children are able to continue their school.
