Adesina urges insurers to publish claims, governance performance

File photo: Dr Akinwumi Adesina

Former President of the African Development Bank Group, Akinwumi Adesina, has urged Nigerian insurance companies to publicly disclose their claims settlement records and corporate governance performance to rebuild confidence in the industry.

Adesina said transparency over claims, customer complaints and institutional accountability were necessary to demonstrate the value of insurance to policyholders and strengthen public trust.

He made the call at the Nigeria Insurance Directors Conference, organised by the Chartered Insurance Institute of Nigeria in collaboration with the National Insurance Commission in Lagos.

The former AfDB president proposed that NAICOM introduce an annual public insurance industry accountability and performance report covering claims received and settled, outstanding claims, average settlement timelines, customer complaints, regulatory compliance, financial soundness and corporate governance.

He said the industry could not demand public confidence while resisting public scrutiny.

Adesina stressed that insurance companies must demonstrate their commitment to policyholders through prompt and transparent claims settlement, noting that the true value of insurance became evident when customers suffered losses and needed the protection for which they had paid.

“When a policyholder pays an insurance premium, that policyholder deserves a premium service in return,” he said.

He also called on insurance boards to take greater responsibility for claims performance, customer complaints, corporate governance and management accountability.

Adesina said the industry’s low penetration, estimated at about 0.5 per cent of Gross Domestic Product, reflected a significant gap in Nigeria’s capacity to protect households, businesses and productive investments.

He urged insurers to expand coverage across agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing, arguing that insurance must play a stronger role in protecting the country’s productive assets and supporting economic growth.

The former AfDB president said the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025 would not automatically guarantee stronger institutions.

“Recapitalisation is not the same as institutional transformation,” he said.

He argued that stronger capital must be supported by sound corporate governance, disciplined underwriting, adequate technical reserves, effective risk management and stronger reinsurance arrangements.

Adesina also urged NAICOM to strengthen risk-based supervision and ensure that insurers were held accountable for measurable results.

Adesina said the industry’s success should be measured by the value delivered to policyholders and the confidence it inspires among Nigerians, rather than the amount of capital raised or premiums collected.

“The measure of success must be outcomes, not announcements,” he said.