At the end of 2022 financial year, Nigeria Liability Insurance Pool remained upbeat with strengthened performance in key liability products and support of the members.
Speaking at its 12th Annual General Meeting held in Lagos, Adetola Adegbayi, chairman of the Pool said despite the varying degrees of challenges facing the global economies during the year under review, the pool did not experience a significant drop.
She said there was an upward growth in the statement of financial position of the pool during the review period.
Adegbayi said the revenue section of the Pool’s 2022 financials shows that even though motor third party liability pool and public liability recorded 8 percent and 11 percent drop respectively, these classes of business continue to play major role as they cumulatively contributed 73.08 percent (motor 43.68 percent and PL 29.40 percent) in the pools gross premium income.
Other contributor to the Pool’s performance during the year was Contingent Employers Liability/Workmen’s Compensation Policy.
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In the terms of claims, she said motor and public liability were responsible for 84.17 percent (motor 72.7 percent and PL 11.4 percent) of the claims paid to members in 2022.
Adegbayi said it’s noteworthy that the pool has continuously witnessed improved performance in the professional Indemnity policy, while effort is on to explore other evolving liability insurance policies in the near future.
While appreciating the board and management for their efforts in growing the pool, she said “to sustain the upward enhancement in the pool’s top line, i wish to implore our members to continuously make a top priority the cession of the various classes of liability insurance policies to the pool so that we will attain that enviable feat expected”.
On the insurance industry in 2023, she said the hyper-inflation experienced has significantly increased living costs and insurance claims in Nigeria due to high dependence on importation.
“Incidence of fraudulent claims is also on increase due the impact of inflationary trend and unemployment.”
To abate this, the industry is advised to be proactive and more dynamic in its claims management, especially with the increased cover granted under motor policy due to recently released rate review guideline, she said.
“The need for the industry to be more dynamic and pro-active in its claims management and administration is therefore of essence, Adegbayi stated.
