By Niyi Jacobs
Leading Nigerian insurance firms paid out a total of N40.439 billion in claims in the first quarter of 2024, a 19.40% increase compared to the same period in 2023. This increase in claims has impacted the premium growth rate of insurance firms, with economic challenges, inflation, and fraudulent claims being significant contributing factors.
According to data compiled by Nairametrics from the financial reports of eight leading insurance companies listed on the Nigerian Exchange, the firms earned a total of N193.694 billion in gross premiums during the period under review, compared to N103.583 billion in 2023.
The insurance sector in Nigeria has faced significant challenges due to high inflation, limited access to foreign exchange, and devaluation of the Naira, which have strained operational costs and affected the overall financial health of insurance companies.
Despite these challenges, the industry has remained resilient, with operators calling for more dynamic and proactive claims management and administration to address the rising trend of fraudulent claims.
The Managing Director of Tangerine General Insurance Plc, Mr. Mayowa Adeduro, attributed the high claims to the economic downturn, inflation, and social vices, while the Chairman of the Nigerian Insurers Association (NIA), Mr. Olusegun Omosehin, acknowledged the industry’s resilience despite the challenges.
The companies that made the list of top claims payers include AIICO Insurance Plc, AXA-Mansard Plc, Consolidated Hallmark Insurance Plc, Coronation Insurance Plc, NEM Insurance Plc, Prestige Assurance Plc, Sovereign Trust Insurance Plc, and Veritas Kapital Insurance Plc.
