The Nigerian Insurers Association (NIA) has announced plans to introduce a digital system for tracking and collating insurance claims to enhance transparency and reduce disputes between insurers and policyholders. Newly elected NIA Chairman, Mr. Kunle Ahmed, disclosed this during his inaugural speech, emphasizing that the initiative aims to streamline claims payments, combat fraud, and increase customer satisfaction.
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Ahmed highlighted that the theme of his tenure, “Digital Disruption & Social Insurance: Reshaping Our Traditional Models,” underscores a commitment to modernizing the industry by moving away from traditional practices. He stressed that insurance companies have an obligation to deliver on promises at the point of claims. In 2023, the industry recorded a significant milestone with N536.5 billion paid in claims—a 54% increase from the previous year—demonstrating the industry’s growth and commitment to fulfilling obligations.
Despite this achievement, Ahmed noted there is still room for improvement, particularly in the claims process. “We will work with market stakeholders to self-regulate and enforce best practices, ensuring that the focus is on paying legitimate claims, not denying them,” he stated. He emphasized the importance of proactive steps in claim resolution, saying, “We must continually look for a reason to pay a claim rather than a reason not to.”
Ahmed added that NIA would collaborate closely with the Nigerian Council of Registered Insurance Brokers (NCRIB) to ensure comprehensive underwriting information at the start of each policy. The lack of sufficient information, he noted, often leads to conflicts at the time of claims. He further outlined plans to standardize pricing across the industry, aligning policy premiums with individual risk assessments to promote fairness and consistency.
