It was torrents of words though for less than twenty-five minutes, likened to torrents of rain, it was enough to drench the thinking faculty of the assembly of insurance professionals gathered for the Year 2025 Induction & Awards Ceremony, CIIN. The torrents of words that captured practices in the industry were not a first time mention but it was distinct in the manner it was compacted into a short delivery without losing its essence.
Chosen as the guest speaker was Mary Adeyanju, MD/CEO at Consolidated Hallmark Insurance Plc, who rendered a no holds barred speech that took precision aim at practices in the industry that was making it difficult to wash off the stains that has become the cynosure of public eyes despite sustained changes the industry has embraced. Her speech reverberated the NAICOM Hall of the College of Insurance and Financial management not minding who’s ox is gored. In fact the only ox that was spared was the National Insurance Commission NAICOM for midwifing The Nigerian Insurance Industry Reform Act (NIIRA). According to her, “is not merely a set of capital requirements; it is a fundamental shift towards embedding regulatory ethics in our operating DNA.
“Under this new dispensation, ethics is no longer a soft, moral choice; it is a regulatory mandate. Ethical failures will attract real consequences, significant sanctions, fines, and the loss of a licence,” she explicitly stated. Not done yet she cleared, “Compliance with NIIRA is therefore, the corporate expression of professional ethics.”
Building on ethics, she used the platform of the induction to address all professionals on the subject of her speech, ‘The Insurance professionals Journey: From Qualification to Ethical Stewardship and Public Confidence. ‘ Adeyanju cleared, “Competence without ethics is like a car without breaks; it may move, but it cannot safely navigate the road ahead. our ultimate relevance and the market’s trust do not rise or fall purely on technical expertise, but on the ethical character that guides its application.”
CIIN guest speaker spread several ethical issues in underwriting that leave bad taste. She stated that rate cutting was done to either secure business or take business from another insurer not willing to provide cover without adequate premium. This ethical issue on which she made her position known, not only weakens market at the same time threatens solvency.
Also in the hall of insurance bad taste captured in her speech was misrepresentation and collusion as well as non-disclosure of material facts. Also beamed on was non-compliance with compulsory third-party motor insurance.
On the claims front she spread out fraudulent claims and inflated repair bills; also tagged was deliberate delays which achieves one aim, weaken trust. Closing this segment of “Claims ‘Moment of Truth,’ was price collusion. It was reasoned as broad scar under ethical issues in claims.
Admitting that there exist ethical issues in claims, Consolidated hallmark CEO said it has not shoved off the fact about claims paid. “In three years (2022-2024), the Nigerian insurance industry paid over N1.03tr i genuine claims. These are real payouts to real Nigerians – families, motorists, businesses, factories and communities.”
Taking a close up view of the reinsurance scene, she said there were columns of ethical issues that revolve round misrepresentation of facts by reinsurers, their sudden policy changes and cancellation of treaty after a loss is reported. Another spanner in the claims works was failure to notify reinsured of material changes. Also being played out was denying valid claims using unreasonable demands.
The bulk stops at the professionals table. Stepping up the solution she said professionals should match ethical shortcomings with a good dose of responsibility by adhering strictly to deflating temptations when they arise because as she pointed out, they are inevitable. Professionals, she insisted should resist shortcuts because it serves as the feeder for practice strain. And for every action taken, integrity she insist must guide.
Adeyanju noted that negative perception by the public has stayed too long and it was time to change the narrative streamed that ‘insurance does not pay’ which she cleared was a common misconception. “We call it misconception, but the insuring public call it correct statement… But I say to them all of the time that insurance is one business that guarantee the survival of every other business. So without insurance other businesses cannot thrive.”
Unfortunately, she said negative stories over shadow thousands of genuine claims paid on a daily basis. Still puzzled by the hold on the misconception by the public, she said insurers have not punctured the claims obligation, “insurance companies pay claims and we keep paying; and yet we are not making the desired impact in the face of the public.”
Advancing the shape insurance should have as opposed to what exists, she said it required active participation of all in reversing the negative narrative. “Our negative narrative has been shaped for us. The insurance narrative has to be shaped by us. We have a responsibility to change the negative narrative by sharing more of our success stories in the social media and spend time telling people the right things about insurance. We need to communicate very transparently and ethically. People must identify us with trust. People must believe in us. We need to buy the trust of the insuring public.”
“Our industry thrives on non.negotiable value – trust. By embracing NIIRA principles and ethical practice, we strengthen our profession, we reinforce the credibility of insurance in Nigeria,” she declared.
