Insurers plead with Nigerians to embrace benefits of insurance

Operators of the nation’s insurance industry have appealed to Nigerians to take advantage of the benefits of insurance to safeguard their life and property.

According to chieftains of the industry, who spoke to AssurPen Online, for instance, said the appeal is at the backdrop of recent EndSARS protest in the country that caused the loss of life and destruction of property worth billions of naira.

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For instance, a top executive of Linkage Assurance Plc, co-sponsor of 2020 training for members of National Association of Insurance and Pension Correspondents (NAIPCO) in Lagos, regretted that a large percentage of the properties that went on flames may not have been insured so as to be compensated.

He said “insurance practice is a very important and veritable risk management mechanism which both the public and private sectors should embrace to insure their life and property in time of unforeseen circumstances.

“The era when insurance policyholders are abandoned by the insurance companies when their assistance is needed most is over. It is important to note that due to the various legislative and supervisory roles of the National Insurance Commission (NAICOM) coupled with intense competition in the industry, policyholders are receiving prompt and full compensation in the event of loss”.

Also, Segun Olalandu, Head, SMCD, AIICO Insurance Plc, said the company is noted for prompt claim settlement to our policyholders and advised all Nigerians to embrace the benefits of insurance to protect ourselves in the event of loss.

Recently, the Commission said it will issue out directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums especially on insurance coverage for strike, riot and civil commotion (SRCC) clauses, the Commissioner for Insurance, Sunday Thomas, has said.

The NAICOM boss said at the Chartered Insurance Institute of Nigeria (CIIN) 2020 professional’ forum at Abeokuta, Ogun state, explained that the move would ensure that profitability can be guaranteed and claims settled promptly without financial strain on the companies.

He maintained thst the recent outbreak of protests and civil unrest across the country and the resultant losses has exposed the vulnerability of Government, businesses and individuals to unforeseen events, adding thst these  incidents have further reinforced the value and necessity of the insurance industry.

“However, these incidents are likely to increase insurance claims, thereby exacerbating the already weakened liquidity and capability of insurance companies. This has reinforced the need for proper underwriting to ensure insurers are able to settle corresponding claims obligations to cushion the effect of losses on Nigerian households and businesses,” he said.

Thomas said it is pertinent to note that insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses, which were redundant in the past and which by competition are mostly offered free of charge must now be adequately rated as an important product for the survival of Nigerian businesses.

“The Commission will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies,” he posited.

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