Persistent distrust arising from delayed and disputed claims settlements has continued to undermine insurance acceptance in Nigeria, industry stakeholders have said. The stakeholders also warned that operators risk deeper public apathy unless claims payment becomes faster, more transparent and customer-focused.
Mutual Benefits Assurance Pays N5.5 Billion in Claims
The concerns come as Mutual Benefits Assurance Plc paid over N5.5 billion in claims to policyholders in April 2026, a development industry players described as a positive signal for the sector struggling with low penetration and weak consumer confidence. Breakdown of the claims settlement by Mutual Benefits showed that N3.67 billion was paid under its General Business portfolio covering motor, engineering, marine and related risks, while N1.91 billion was disbursed under group life and retail life policies.
“In Nigeria today, many people still see insurance as a product that does not work because of past experiences involving delayed or unpaid claims. The moment insurers consistently honour obligations promptly, public confidence improves naturally,” he said.
Impact of Prompt Claims Settlement
According to him, prompt claims settlement had the capacity to increase policy renewals, attract first-time insurance buyers and improve the sector’s contribution to the economy. Stakeholders noted that in more developed insurance markets, public confidence was driven not by advertising but by the certainty that claims would be paid when losses occur.
Managing Director of Mutual Benefits Assurance, Olufemi Asenuga, described insurance as a business built fundamentally on trust and reliability. He added that the company’s claims culture reflected its commitment to customer service, disciplined underwriting and operational efficiency.
Policyholders Applaud Responsiveness
Policyholders who recently received claims payments from the company also commended its responsiveness during difficult periods, particularly in handling motor and life insurance claims. Industry analysts said operators that prioritise transparent and efficient claims settlement are likely to emerge stronger as the sector undergoes recapitalisation and regulatory reforms ahead of the July 2026 deadline set by the National Insurance Commission.
They further argued that improved claims culture across the industry could significantly deepen insurance penetration, strengthen financial inclusion and increase the sector’s contribution to national economic development.
