Insurance firms battle with many risks, claims in 2021 – Underwriter

Professionals across different sectors of the economy are still recounting the gains and losses of the immediate past 2021 fiscal year.

In insurance sub sector, the risks the underwriters contended with included: dilapidated roads, fire outbreaks, and buildings collapse, among others.

An Edo base Insurance underwriter, Tella Adekunle declared that the year was challenging for the insurance players as they had to device prudent means to address risks and claims which came in droves.

Adekunle told the News Agency of Nigeria (NAN) in Benin Tuesday, that 2021 did not only witness the emergence of new variants of the COVID-19 but rising risks in the sector.

“The infrastructural failure and dilapidated nature of our highways have caused huge losses in goods-in-transit insurance in the year under review.

“During the year, we equally grappled with cases of buildings collapses, there were also fire related risks.

“All of these heightened the spate of risks under fire and special perils insurance.

“Material damage section of the ‘All-risks’ policy has witnessed massive claims by insurers and also their reinsurers.

“Mainly, 2021 unlike 2020, was a challenging one for the insurance sector which constantly devices mean to improve by learning from experience,’’ he said.

Tella noted that players in the Insurance sector had to introduce a Professional Reinsurers Association of Nigeria (PRAN RATE), in the year 2021, to tackle the ceaseless cases of fire losses in the country.

According to him, the PRAN rating will be a reflection of fire experiences and will fully take off by middle of 2022.

Tella added: “The PRAN rates will no doubt make up for the terrible claims experience.

“Other stringent underwriting approaches have been and are being activated by players in the industry in the light of year 2021 experience”.

“If earnestly followed through, will mitigate the effects of losses, help reduce exposures and create increased capacity not only for first line risk carriers but also the reinsurers.”