Like any brand or corporate offering products or services to its customers, insurance companies sell beyond the policy; they sell promises. Although these promises differ from brand to brand, one thing is consistent, every customer or client expects the product or service provider to not renege on that promise.
For insurance companies, the promise is to indemnify or bring a policyholder back to his or her initial financial stand before the occurrence of a loss – this in insurance terms is called Claims. In other words, the settlement of claims is the sacrosanct obligation of insurance as any form of delay or difficulty to pay claims hurts its reputation even if the reason stems from a global economic crisis.
Understanding the commitment to the sanctity of the promise of prompt payment of claims, Leadway Assurance Company Limited has consistently outdone the competition to record the largest claims payout in the industry for the sixth consecutive year.
In 2020, despite prevailing economic realities precipitated by the COVID 19 pandemic and other adverse economic outcomes, the firm paid N43.5bn to its policyholders, maintaining the industry’s record of highest annual claims payment year-on-year for yet another time.
This feat goes beyond reiterating the leading insurer’s commitment to its customers through exceptional customer service delivery and prompt claims payment but also cements its role as a significant contributor to wealth creation and protection in the Nigerian economy.
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According to the Insurance Information Institute’s paper on “How Insurance Drives Economic Growth”, Chief Economist Dr Steven Weisbart stated that the insurance industry is “at the heart of the growth and progress of every modern economy”. In this edition, we shed more light on what payment of claims means to both the policyholders and the economy.
1. Claims serve as first financial responders
Whenever there is a loss, claims serve as the financial first responders by expediting the recovery of the policyholder’s loss.
The claims payout benefits not only those directly affected by the loss but others as well. For example, claim payments to policyholders on damages to vehicles, home, stores, or medicare for accidents, ultimately goes to mechanic repair shops, home repairs stores and professionals, and healthcare facilities to fix cars, rebuild homes and provide medical treatment. Cumulatively, the ripple effects on the ecosystem as these payments affect related businesses ensuring they keep people employed, pay taxes to the Governments, and stimulate overall economic performance and growth.
This robust and inclusive impact on an economy is the chief reason why insurance is at the heart of all the developed economies worldwide.
2. Helps stabilize the economy
To say that insurance can lead to economic stabilization sounds unthinkable based on the erroneous belief that insurance takes from you without giving back. Others think, “why bet on a risk that I cannot project would happen right now or the nearest future?” Arguably, at the top of the minds of most Nigerians is what can be called the ‘Now Mindset’ – we want what we can have now. This mindset robs one of future support or stabilizer when life unexpectedly happens. This is where insurance comes in for those who are proactive and financially savvy.
The role of insurance is that of a stabilizer and trust-holder in unplanned events, like losing a loved one, falling ill, or getting involved in an accident. There is a ready support system to rely on if you are smart to have your insurance policy in place. The constant inflow of premiums by policyholders and outflow of claims when due further helps keep the economy pliable.
Not only does insurance help enhance businesses survival and wealth protection, but the amount also paid as claims, which would have been money lost to the risks, helps in reflating the ecosystem and the economy. This analogy explains why insurance is an integral part of a performing economy. It provides stability in shocks to the various sectors, saving employment and wealth while assuring financial security and peace of mind to households and businesses.
Similarly, this analogy explains why Leadway Assurance, Nigeria’s leading insurer with over five decades of operational experience in risks management, is critical to businesses’ wellbeing, the happiness of households and the stability of various ecosystems and the national economy.
But most importantly, the firm remains resolute in the exemplary role of enabling the wellbeing of households, businesses, industries, and the economy. Leadway Assurance remains solidly poised to meet financial obligations of existing and prospective policyholders following significant improvement in solvency ratio by 539% from 439% in 2019 to 978% as of December 2020.
So, not to worry, when life throws at you the unexpected, there is an array of innovative products and policies to bridge the financial protection gap and mitigate risks that may occur.
To find out more about how Leadway can provide protection for your households and businesses, please visit www.leadway.com or call the Leadway Assurance customer care helpline on 01-2800-700. You can also send an email to [email protected] for professional advisory or request a call back by visiting www.leadway.com/call-me.
We are within your reach on our social media outlets – @LeadwayAssurance on Facebook & Instagram, @Leadwayinsure on Twitter. You can send a DM, and we would revert with all the information you require.
