AIICO Insurance Plc has said that it has paid over N200 billion in claims and benefits settlements over the past five years.
Managing Director/CEO of AIICO Insurance Plc, Mr. Babatunde Fajemirokun stated this in a statement released in Lagos on Wednesday.
Fajemirokun noted that this reflects AIICO’s commitment to providing financial security and peace of mind to its policyholders.
He noted that a comprehensive review of AIICO’s claims and benefits settlements from 2019 to 2023 revealed the company’s consistent prioritization of timely disbursement of claims to both retail customers and corporate clients.
According to him, the breakdown of claims paid during the years under review is as follows: N30.6 billion in 2019, N31.6 billion in 2020, N47.3 billion in 2021, N44.9 billion in 2022, and N46.5 billion in 2023.
Fajemirokun emphasized that these figures showed AIICO’s dedication to meeting its obligations and maintaining the trust of its policyholders.
He noted that AIICO’s claims management process and customer-centric approach had made its position as a trusted partner in safeguarding the financial well-being of individuals and businesses alike.
He emphasised the company’s dedication to customer satisfaction and service excellence.
Fajemirokun said: “At AIICO Insurance, our customers are at the heart of everything we do. We exist to serve and protect them, ensuring that their genuine claims are settled swiftly and fairly.
“This five-year profile is a testament of our commitment to delivering on our promises and maintaining the trust that our customers place in us.
“We remain dedicated to continuously improving our processes and services to meet the evolving needs of our valued policyholders”.
According to him, AIICO’s track record in claims settlement highlights its core values of integrity, professionalism, and customer-centricity.
Fajemirokun said the company was of the view that timely and fair claims payments are critical to customers’ financial security, especially during challenging times.
He added that insurance company would continue to leverage advanced technology and innovative solutions to enhance its claims processing capabilities.
The managing director further said that the insurer’s goal was to provide an even more seamless and efficient experience for its customers, ensuring that they received the support they needed when it mattered most.
Nairmetrics reported recently that leading insurance companies in Nigeria paid N141.761 billion in claims in the financial year of 2023, compared to N120.563 billion in 2022, representing a growth of 17.58%.
The high claims have impacted the premium growth rate of insurance firms, with economic challenges, inflation, and fraudulent claims being contributing factors.
This is according to data compiled by Nairametrics from the financial reports of AIICO Insurance Plc, Prestige Assurance Plc, NEM Insurance Plc, AXA-Mansard Plc, Mutual Benefits Assurance Plc, Cornerstone Insurance Plc, Consolidated Hallmark Insurance Plc, Coronation Insurance Plc, all of which are among the largest insurance companies quoted on the Nigerian Exchange.
The insurance companies also earned a total of N389.493 billion in gross premiums during the period under review, compared to N291.923 billion in 2022.
What this means is that the insurance companies paid 39.40% of their premium as claims expenses compared to 41.29% in the same period last year, a marginal decrease of 1.89%.
The high claims recorded by insurance firms in recent years have affected their premium growth rate.
