Its yet to be seen if commercial insurance protection for strikes, riots and civil commotion SRCC can be triggered if its in place especially in the northern state of Kano and coming after is Kaduna State, following the protests that escalated into violent disorder and malicious damage on a large scale.
There were reported violent scenes where government and its department properties vandalised, looted and touched, commercial properties were also vandalised.
With the protests over and losses counted its yet to ascertained if assets at risk were on cover. A response by this by the Director General Nigerian Insurers Association Mrs Adebola Odukale said member companies of the Association have not communicated any obligation to claims on account of losses from the protests.
“No feedbacks from members yet,” Odukale said but the current state she explained does not rule out insurers involvement if such assets were under insurance cover at the right price for risks and with extensions for such situation as riots and civil commotion.
“But if policy taken on those assets have extensions for riots and civil commotion, malicious damage and adequate premiums were paid as and when due, insurers will definitely meet up with claims payment,” she stated.
After the #EndSARS protests of 2020, strikes, riots and civil commotion which were not traditional extensions for many commercial covers witnessed a build up in requests.
The global space has seen the rise in SRCC insurance claims, particularly since 2019, has contributed to an increased demand for specialist standalone political violence insurance.
“The conversation has shifted,” says Srdjan Todorovic, Head of Terrorism and Hostile Environment Solutions at Allianz Commercial in Airmic’s Political Risk in 2024 report. “It makes no sense to ignore a peril that has resulted in billions of dollars in losses over the past six years and is potentially increasing with the election cycle and the subsequent outcomes of those elections.”
