The Nigerian Insurers Association (NIA) has announced plans to implement a digital system for the collation and tracking of insurance claims, aimed at enhancing customer experience and minimizing fraud in the sector. NIA Chairman Kunle Ahmed, who outlined the initiative at his investiture in Lagos, emphasized the significance of reliable claims processing in maintaining trust in the insurance industry.
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Ahmed explained that the shift to a digital system would enable customers to monitor their claims seamlessly, while insurers could streamline and validate claim handling more efficiently. “The true test of an insurance promise happens when a claim is reported,” he noted, highlighting the industry’s substantial growth in claims payments, with a record N536.5 billion paid in 2023, representing a 54 percent increase over the previous year.
Despite these gains, Ahmed acknowledged the need to refine claims processes and ensure that insurance companies prioritize prompt and accurate payouts. He pledged to collaborate with stakeholders, including the Nigerian Council of Registered Insurance Brokers (NCRIB), to standardize underwriting information and pricing based on clients’ risk levels, helping to prevent future claims disputes.
Further, he called for adherence to Environmental, Social, and Governance (ESG) standards within underwriting practices, as well as efforts to manage the economic pressures of inflation on claim settlements. Ahmed appealed to industry players for their support in pushing these reforms, underscoring that insurance remains a critical risk-mitigation tool in all economic conditions.
