With about N11 billion so far paid as claims from the 2020 #EndSARS destructions, consumers, particularly small and medium scale enterprises (SMEs) are showing increased appetite for insurance protection.
According to industry sources, the consumers are pushing to renew their policies in 2022 to protect their assets and businesses, having seen how insurance companies compensated some victims of the #EndSARS protests.
From the incident, insurance companies have paid out over N11 billion as of the end of January 2022, with the expectation that total claims when concluded would be about N20 billion.
Ganiyu Musa, chairman, Nigerian Insurers Association (NIA) said the industry witnessed a better renewal season this 2022.
According to him, the EndSARS experience has created a lot of awareness on the need for insurance protection, stating that beyond insurers adding it as part of their marketing, many people are aware of the series of claims paid to victims of the incident.
Ganiyu who is also the GMD of Cornerstone Insurance plc said during a press briefing in Lagos that payment of claims was a priority for the industry now more than ever, as no company can afford to joke with it.
“Yes, we are in business to pay claims and that is why we are encouraging people to insurer themselves and their assets against the unexpected, Musa said.
Read also: EndSARS white paper: Lagos complied with the law – Attorney-general
He said the industry expects that the EndSARS claims would be about N20 billion when concluded, stating that some unsettled and pending claims were being investigated and processed.
According to him, out of the N508 billion premium generated in 2020, claims on matured risks amounted to N224 billion.
“Merely looking at this figure you can see that claims took almost 50 percent of the income generated, so we are standing strong with our customers, the NIA boss stated.
A further breakdown on the EndSARS released earlier by the NIA showed that 99 claims were settled on malicious damage; 8 claims on business interruption; 455 claims on burglary attacks and 912 claims on fire and burnt sites.
Following huge losses suffered by businesses during #EndSARS, NIA said that the insurance industry, in line with its role of providing financial intermediation and restoring businesses, quickly moved in to provide the necessary cushion for those that have insurance covers.
Yetunde Ilori, director-general of the NIA, while assuring Nigerians that the insurance industry will continue to live up to its mandate of supporting businesses, she called on individuals and corporate entities to imbibe the culture of insurance.
During the protests that took place in October 2020, government offices, banks, shopping malls, media houses, toll plazas and private offices and shops suffered losses following the activities of suspected hoodlums who hijacked the exercise.
Meanwhile, experts at Allianz Nigeria in a recent report to mark the first anniversary of the EndSARS protest observed that micro, small and medium enterprises (MSMEs) were usually faced with financial challenges, which constantly affect their operations and sometimes lead to their closure.
According to them, in the wake of the one-year anniversary of the #EndSARS protests, it is important to re-emphasise the importance of insurance to the MSME industry and the Nigerian economy at large.
“In its aftermath, statistics revealed a loss of confidence in the economy by foreign investors as franchises such as Shoprite/SPAR were badly affected. This resulted in job losses, further worsening the unemployment crisis in the country.
According to Allianz, banks who gave out loans were badly affected, as loans to affected businesses had to be written off. Not only did several states groan under the financial strain of rebuilding damaged public assets, a good number of MSME’s without insurance are yet to return, one year afterwards, the insurer said.
We support SME’s by providing periodic risk analysis of the operating environment. This is highlighted in the Allianz Risk Barometer results, which is published yearly, the insurer said.
