The payment of EndSARS claims to insured companies, organisations and individuals which as at early February was over N11bn, was screen play of the ingenuity of loss adjusters and the insurance companies.
The chairman, Nigerian Insurers Association NIA, Mr Ganiyu Musa, said current figures are expected to rise because loss adjusters are still turning the wheels of the adjusting assigned to them by their principals (Insurers), and there would be a roll out of several underwriting considerations and the interpretations following after.
Musa recalled that as at date of the media briefing (February 2) about N20bn claim reports have been sent to underwriters and when the adjusting details are done the claims obligation of the insurers are expected to rise.
He did not rule out claims paid on the platform of ex-gratia but was quick to clear that ex-gratia payment ‘happens every time’ and its not limited to EndSARS. Pointing out that payment of claim is determined by several factors.
He also said there was no case of any underwriter pressured to pay underserved claim, reiterating that no such report had been received. He said claims cheques were signed on the conviction that there was a genuine business reason to pay even in cases it falls on the ‘borderline claim.’
On the fire rates that would go up mid-year, he said it a usual underwriting practice and will not hinge it on EndSARS as the propeller. According to him, rates go up on down due to various conditions in operation.
He said the expected hike in fire rate is because of sustained losses over a period of time and current low risk pricing in the face of sustained losses is not taken in isolation but all the other components in the underwriting were considered.
This he noted led to all stakeholders meeting to assembly various fire underwriting experiences and all agreed that action was needed.