Loss adjusters push for better claims management, service fees for efficiency

The loss-adjusting arm of the insurance industry has emphasised the importance of effective claims management in building trust and restoring consumer confidence in the sector.

According to them, while adjusters must build capacity and adopt modern technology to remain effective, it has emphasized the need for insurers to scale up their fees, which they say was long over-due.

These were takeaways in a communique issued at the end of The Institute of Loss Adjusters of Nigeria (ILAN) maiden open conference held in Lagos, with the theme: ‘Redefining Loss Adjusting for Sustainable Claims Management’.

As contained in the communique, “claims payment remains the acid test for the insurance industry”. It stated that effective claims intervention and customer satisfaction are critical for redefining loss adjusting and ensuring sustainable claims management.

They noted that early notification of claims and adoption of advanced technology will improve efficiency in claims processing.

“The use of artificial intelligence (AI), blockchain, drone technology, and data analytics was identified as essential for improving loss assessment accuracy and cost-effectiveness.

Read also: NAICOM urges insurers to simplify claims process for public trust

According to the adjusters, drone technology can capture high-resolution images of affected sites, reducing physical inspection costs and time while improving accuracy in claims assessments.

“Loss adjusters must continuously upskill through specialized training, integration of modern technology, and enhanced data analytics for competitive advantage.”

“Greater collaboration with engineers, legal experts, and IT professionals will improve the quality of loss assessment and risk evaluation.”

On the scale of fees, they called for an urgent review of the loss adjusters’ scale of fees, ensuring they are commensurate with service demands.

“The introduction of an advance payment system for loss adjusters’ fees was recommended to enhance efficiency and service delivery.”

“Engagement with the Nigerian Insurers Association (NIA) to review the scale of fees for loss adjusters is the way out, noting that development of a market conduct agreement detailing fee payment structures, including advance payments.

Also given attention was the importance of data privacy, urging players to comply with data protection laws, while handling sensitive information.

“A data privacy policy will be developed to guide ethical practices in claims assessments.” Drafting of a comprehensive data privacy policy to ensure compliance with industry regulations, was agreed

“The 2025 ILAN Conference concluded that the integration of technology, professional upskilling, and industry-wide collaboration are fundamental to redefining loss adjusting and achieving sustainable claims management.”