Settle claims promptly, ex-AfDB president tells insurers

L-R Mr Akinjide Orimolade, President chartered institute of insurance of Nigeria Dr Akinwumi Adesina CON CGH Representative of the Minister of Finance Commisioner for insurance Mr oluSegun Ayo Omosehin

Former President of the African Development Bank Group, Dr Akinwumi Adesina, has urged insurance companies in Nigeria to prioritise prompt claims settlement, transparency and accountability to rebuild public confidence in the industry.

Adesina said insurance firms must demonstrate their value by honouring valid claims rather than focusing mainly on collecting premiums.

According to a statement issued by his media office on Friday, Adesina made the call on Thursday while delivering the keynote address 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 challenged insurance board chairpersons and directors to take greater responsibility for claims performance, customer complaints, corporate governance and management accountability.

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

“Insurance boards must take greater responsibility for claims settlement, customer complaints, corporate governance and management performance,” he said.

He also proposed that NAICOM introduce an annual public accountability and performance report detailing claims received and settled, outstanding claims, average settlement timelines, customer complaints, regulatory compliance and the financial soundness of insurance companies.

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

Adesina, who was named Global Ambassador for Insurance in Nigeria and Face of Insurance in the country at the conference, also called for stronger regulatory supervision and improved corporate governance in the sector.

He cautioned that the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025 would not automatically translate into institutional transformation.

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

He said increased capital must be supported by disciplined underwriting, adequate technical reserves, effective risk management and stronger reinsurance arrangements.

Adesina further urged insurance operators to expand coverage across agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing to support Nigeria’s economic growth.

He expressed concern that insurance penetration in the country remained approximately 0.5 per cent of Gross Domestic Product, saying the industry had a significant role to play in protecting households, businesses and productive investments.

He said insurance must become a stronger pillar of President Bola Tinubu’s $1tn economy ambition by protecting productive assets, managing risks and mobilising long-term capital.

Adesina also challenged industry stakeholders to work towards NAICOM’s 2031 targets of increasing insurance penetration to 10 per cent of GDP, extending active insurance coverage to 25 million Nigerians and developing 6,000 certified insurance professionals.

He called for measurable performance targets, quarterly monitoring and independent assessments to ensure the industry delivered on its commitments.

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

He urged insurance regulators, professional bodies and operators to work collectively towards building institutions worthy of public confidence.

Concluding his address, Adesina said, “Do not just build insurance companies. Insure the nation. Protect its wealth. Finance its growth.”

He added, “The future of Nigerian insurance is not something to wait for, but something we must deliberately build. And the time to begin is now.”