Business woman showing insurance document over white desk at office
The issue of claims payment in insurance contract is viewed as main reason why insurance business exists. Ebere Nwoji reports that insurers and their stakeholders now view claims settlement, which nurtures public trust and corporate integrity as currency for insurance contract
Over the years, lack of public trust, failure by some insurance managers to prove the integrity of their corporate entities through payment of genuine claims when risk occurred have been the bane of insurance sector growth. It has also robbed the insurance sector off the much-desired mass patronage.
With the result that whereas virtually every Nigerian including uneducated rural dwellers have embraced banking services many years ago, most Nigerians including the educated class jettison even the compulsory insurances. Against this backdrop, insurance sector has taken the lowest position among all sub sectors of finance services sector. For instance, pension sector, hitherto an aspect of insurance today prides itself in accumulation of over N32 trillion assets as at May 2026, while insurance sector’s total assets as at the end of Q4 2025 stood at N4.78. Total premium of the industry, which represents its annual turnover stood at N2.3 trillion as at the end of 2025.
