It was in the twilight of military rule. The economy was under structural adjustment. Inflation was high, the naira was volatile, and many professional bodies were struggling to find their footing in a fragile regulatory environment. That was the last time Nigerian loss adjusters reviewed their professional fee scale.
Thirty-three years later, in a vastly more complex risk environment, the same fee structure lingered, frozen in time while the world moved on.
The recent revision secured by the Institute of Loss Adjusters of Nigeria (ILAN), therefore, is not just a technical adjustment but a long-overdue correction, one that speaks to professional dignity, market realism, and the sustainability of Nigeria’s insurance ecosystem.
Read also: Nigeria’s economy records fastest growth in three years
For over three decades, loss adjusters operated in an economy that changed dramatically around them. The cost of technology, transportation, training, compliance, and staffing rose steadily. Yet their fees did not structurally reflect inflation, currency depreciation, or the growing complexity of claims.
Consider what 1992 represents in global insurance history. Catastrophe modelling was rudimentary. Cyber risk did not exist as a commercial product line. Climate change was not yet reshaping underwriting strategies. Today, adjusters handle everything from oil and gas incidents to cyber breaches, aviation losses, flood disasters, and large-scale infrastructure claims.
In markets such as the United Kingdom, loss adjusting fees are regularly reviewed and often benchmarked against inflation or linked to claim complexity. In the United States, firms adjust pricing based on catastrophe exposure and specialist skill requirements. In South Africa, professional bodies work closely with insurers and regulators to maintain periodic reviews that protect both service quality and industry competitiveness. But Nigeria, by contrast, waited 33 years, with profound implications for such a delay.
“There is also a broader economic implication. Nigeria faces increasing exposure to climate-related disasters, floods, coastal erosion, and extreme weather events. Infrastructure expansion, from roads to refineries, introduces high-value risk concentrations.”
Underpriced professional services weaken independence. When fees stagnate, practitioners may be tempted, consciously or unconsciously, to cut corners, reduce investigative depth, or depend too heavily on insurer goodwill. A properly compensated adjuster is better positioned to act impartially, ensuring fairness to both insurer and policyholder.
Also, stagnant fees erode capacity, as complex claims demand advanced training, digital tools, forensic expertise, and global best practices. Without adequate revenue, firms struggle to invest in young talent or cutting-edge systems. Over time, the industry risks hollowing out its technical core.
Likewise, consumer confidence suffers, as insurance credibility rests on claims settlement, and claims settlement rests, in part, on competent loss assessment. If adjusters are under-resourced, delays multiply, disputes increase, and trust declines.
That trust deficit has historically plagued Nigeria’s insurance penetration rates, which remain among the lowest globally.
The newly revised fee structure, negotiated with the Nigerian Insurers’ Association, is therefore more than an income boost. It is a structural signal that professionalism must match economic reality.
But this correction also raises uncomfortable questions. Why did it take three decades? What institutional weaknesses allowed such a prolonged stagnation?
In 1992, Nigeria’s insurance market was smaller, less sophisticated, and more domestically contained. Today, recapitalisation efforts are expanding underwriting capacity. Large infrastructure projects, oil installations, aviation assets, and emerging digital risks require high-level technical assessment. Nigerian insurers are increasingly retaining risks previously ceded abroad.
That shift means Nigerian adjusters will handle larger, more complex losses locally. Without competitive fees and robust training, the country risks importing foreign expertise at a higher cost, a contradiction in a sector striving for localisation and economic self-reliance.
The ideal way forward must therefore go beyond a one-off fee revision. A periodic review must become institutionalised, as inflation indexing or biennial assessments tied to macroeconomic indicators would prevent another 33-year freeze. Professional fees cannot be static in a dynamic economy.
Similarly, transparency and accountability must accompany higher earnings. ILAN’s focus on digital transformation and strategic roadmaps is encouraging. But increased revenue should visibly translate into improved turnaround times, better documentation, and more efficient dispute resolution. The public must see value for money.
Likewise, capacity building must be relentless, as specialised training in cyber risk, climate-related losses, engineering claims, and data analytics is no longer optional. Partnerships with international adjusting firms, exchange programmes, and certification upgrades can elevate standards. The goal should be to make Nigerian adjusters regionally competitive across West Africa.
Also, regulatory enforcement must remain firm, as one chronic complaint in the past has been delayed claims payments, which, in turn, delayed professional fees. The current regulatory emphasis on settling fees alongside claims within defined timelines is critical. Without enforcement, reforms remain theoretical.
Finally, collaboration across the insurance value chain must deepen. Insurers, adjusters, brokers, and regulators share a common interest, which is restoring faith in insurance as a safety net. Professional tension over fees must not degenerate into adversarial relationships. Instead, structured dialogue and shared data should guide future adjustments.
There is also a broader economic implication. Nigeria faces increasing exposure to climate-related disasters, floods, coastal erosion, and extreme weather events. Infrastructure expansion, from roads to refineries, introduces high-value risk concentrations. As the economy formalises and digitalises, cyber incidents will rise.
In this environment, the loss adjusting profession is not peripheral. It is central to economic resilience, as efficient claims assessment ensures businesses recover faster, and faster recovery protects jobs, and job protection stabilises communities.
Read also: Edun says economy now broad-based as growth holds above 4%
Thirty-three years ago, Nigeria was debating transition and survival, but today, it debates competitiveness and sustainability.
The fee boost for loss adjusters is a modest but symbolic milestone in that journey. It acknowledges that professional services cannot be trapped in outdated economic assumptions. It recognises that technical expertise has value, and that value must be protected if institutions are to thrive. The true test, however, lies ahead.
If this reform triggers a culture of regular review, strategic planning, technological investment, and generational mentorship, it will mark the beginning of a stronger insurance ecosystem.
If it remains a singular adjustment after decades of apathy, history may repeat itself. Nigeria cannot afford another 33-year wait.
