‘Insurers Paid 54% Of Income As Claims In 2023’

In the 2023 financial year, insurance companies in Nigeria reported over N1 trillion in Gross Premium Income, with N536.5 billion—representing 54 per cent of this income—paid out as claims to policyholders, according to Mr. Kunle Ahmed, chairman of the Nigeria Insurers Association (NIA).
Ahmed, who also serves as the managing director and CEO of AXA Mansard Insurance Plc, stated that the significant allocation for claims demonstrates the industry’s improvement and commitment to paying genuine claims.
During his Pre-Investiture Media Unveiling as the 26th NIA chairman at the association’s headquarters in Victoria Island, Lagos, Ahmed emphasized his administration’s focus on enhancing claims processes to ensure promises are fulfilled and expectations are exceeded. “The recent growth in claims paid—N536.5 billion in 2023—highlights our dedication to our clients. However, we acknowledge that there is still more work to be done to improve processes and strengthen the trust and confidence of our stakeholders,” he said.
He announced that his regime would prioritise customer centricity to boost customer satisfaction, which will include initiatives to simplify the insurance onboarding process, improve claims handling, and ensure operational transparency. “A satisfied customer is not just a repeat client; they will become the best advocates for our industry. We will adopt best practices that prioritise the customer journey, ensuring our clients always feel valued and understood,” he added.
Ahmed also promised to drive digital transformation within the industry, noting that the insurance sector has historically lagged in adopting digital solutions. “Embracing digital innovation will be essential as we plan to launch an innovation challenge to identify solutions that streamline our processes and enhance customer experience,” he pointed out.
Additionally, he expressed plans to engage with government agencies to advocate for policies that support the insurance sector and ensure its integration into national development plans. This includes collaborating on the Nigeria Insurance Reform Bill, aimed at modernising the regulatory framework and enhancing the industry’s capacity to serve the public effectively.
“Raising awareness about the importance of insurance is vital not only for our industry’s growth but also for economic development. We will expand our outreach initiatives, including educational programs in schools and partnerships with media organisations to disseminate information about insurance products and their benefits. We believe that fostering a culture of insurance literacy will empower individuals and businesses to make informed decisions,” he vowed.