Regulatory pressure drives insurance claims’ Q1 response rate to 89%

The Nigerian insurance industry’s claims response rate rose to 89.1% in the first quarter (Q1) of 2025, demonstrating significant progress in policyholder protection, thanks to regulatory pressure.

This marks a major leap in operational efficiency and regulatory compliance, which underscores a commitment to customer protection, industry players say.

The National Insurance Commission (NAICOM) said that while claims made in Q1 amounting to N1.59 billion represent a positive improvement in the industry’s loss ratio when compared to Q1 of 2024, it represents 89.1% of total reported claims.

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“This indicates improved responsiveness of the industry to stakeholders in terms of financial protection for lives, families, businesses and futures that were secured,” the Commission said.

Kunle Ahmed, Chairman, Nigerian Insurers Association (NIA), said during the sector’s Annual General Meeting that the industry in 2024 paid net claims amounting to N622 billion, with the non-life segment accounting for N437 billion and the life segment N185 billion.

According to him, the developments were shaped by regulatory changes, economic conditions, and evolving market dynamics.

NAICOM had urged insurance companies to simplify their claims process, as a critical step towards rebuilding public trust in the industry.

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The Commission believes that making the claims settlement process easier and efficient will enhance the industry’s reputation and better experience for consumers.

Ebelechukwu Nwachukwu, chairperson, Sub-Publicity Committee of Nigeria’s Insurers Committee, had disclosed the position of NAICOM during a media chat after the 17th Meeting of Insurers Committee held in Lagos.