Nigeria Insurance Companies Offset N747 Billion Claims 

Yemisi Izuora

Insurance companies in Nigeria have maintained commitment in claims settlement despite harsh operating environment.

In a recent report, the Nigerian Insurers Association, NIA, revealed that underwriting firms made claims payment to the tune of N747.06 billion within five years.

The settlement were made to both organisations and individuals who suffered various kinds of losses.

The NIA, broke down the payment indicating that in 2015 non-life insurers paid N54.65 billion, while life operators paid N50.57 billion.

The non-life operators paid N57.76 billion: life operators, N61.87 billion and in 2017, non-life 70.52 billion and life N72.31 billion while in 2018, non-life insurers paid N98.70 billion; life operators, N94.78 billion and in 2019, non-life N78.72 billion and life operators N107.17 billion, the report said.

I’m another development, Insurance companies providing Retiree Life Annuity (RLA) to retirees under the Contributory Pension Scheme (CPS) received N10.1 billion premium, in the fourth quarter of last year.

According to the Director-General, of the National Pension Commission, PenCom, Mrs. Aisha Dahi-Umar, the N10.1 billion was approved for payment to 14 companies as premium in return for total monthly and quarterly annuities of N111.68.

The Commission, granted approval to 1,596 retirees during the quarter under review.

Also, a total lump sum of N6,284,179,444.33 was approved for payment to the retirees.

She explained that retirees can buy a life annuity contract by paying a portion of his or her Retirement Savings Account (RSA) as premium to an insurance company, which in turn provides the monthly or quarterly payments, subject to the regulations jointly issued by PenCom and the NAICOM.

The Commission, she said will ensure that pension contributions are safe.

“This is achieved through the separation of the investment and custody functions between PFAs and PFCs. Furthermore, there is effective monitoring and supervision through daily monitoring of the investment decisions made by the Pension Fund Administrators (PFAs) in order to ensure compliance with the PRA 2014 and the investment regulation.

“Moreover, there are stringent provisions in the Regulations for the investment of pension fund assets that ensure the ring fencing of the assets and allowing investments only in instruments with minimal risks. There is also a sealed guarantee such that in case of any infraction, the Pension Fund Custodian (PFC) or its parent company will pay any amount that may be lost due to the infraction.” the DG said.

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