Trust in Claim Payments Crucial for Nigeria's Insurance Sector

The Nigerian insurance sector is grappling with significant challenges, primarily stemming from a lack of public trust in claim settlements. Experts assert that the core reason for the existence of insurance businesses is the settlement of claims, which nurtures public trust and corporate integrity.

The sector's low patronage is attributed to poor awareness of the value of insurance among Nigerians, particularly in impoverished communities. Despite the increasing financial literacy, many still prefer to carry risks rather than purchase insurance.

Former Commissioner for Insurance, Fola Daniel, stated that genuine claim payments serve as the best advertisement for insurance companies. Niyi Onifad, Managing Director and Chief Executive Officer of Heir Insurance, emphasized the importance of trust and integrity in claim settlements, which should form the currency of insurance contracts.

The insurance sector's total assets were reported at N4.78 trillion by the end of Q4 2025, with an annual turnover of N2.3 trillion, indicating a need for improvement in public perception and engagement.