Insurance Industry Boasts Of N622 Billion Claims Payment As Opaque Nature Of Recipients Raises Doubts

By LOVETH AZODO,  Lagos

Nigeria’s insurance sector recorded a landmark N622 billion in claims payouts in 2024, a staggering figure meant to demonstrate growth and reliability. Yet, the continued absence of identifiable beneficiaries is raising questions about transparency, public trust, and the real impact of these payments.

Every year, the Nigerian insurance industry announces impressive numbers gross written premiums in trillions, asset growth in percentages, and claims payouts in hundreds of billions. And yet, for many Nigerians, insurance remains distant, misunderstood, and largely distrusted.

The latest announcement at the 54th Annual General Meeting (AGM) of the Nigerian Insurers Association (NIA), held in Lagos, followed the same familiar script.

The Chairman of the NIA, Mr. Kunle Ahmed, revealed that the industry paid out a total of N622 billion in claims in 2024. This included N437 billion in the non-life segment and N185 billion from the life segment, a significant leap that was meant to reassure the public of the industry’s responsiveness.

According to him, the sector’s gross written premium surged by 56% to N1.562 trillion from N1.003 trillion in 2023. Non-life business contributed N1.1 trillion, while life business stood at N470 billion. The industry’s total assets also saw a remarkable rise to N3.9 trillion, and market capitalization hit N1.2 trillion.

But beyond the balance sheets and boardroom applause, one fundamental issue remains unaddressed: Who are the people behind these payouts? Where are their stories? Why is no face attached to the N622 billion?
A Billion-Naira Question: Who Benefited?

The insurance industry often defends its lack of disclosure by citing privacy concerns and claiming that policyholders prefer anonymity. But this position appears increasingly out of step with the reality on ground. When claims are denied, delayed, or disputed, it is these same policyholders who go public tweeting, petitioning, and holding press conferences.

So why, when claims are successfully paid, do they suddenly become ghosts?

Considering how insurers develop different marketing strategies and go to great lengths to implement them despite industry hurdles it’s puzzling that none appear to have explored creative ways to encourage or incentivize claimants to voluntarily share their testimonies.

Whether through subtle rewards, storytelling campaigns, or showing prospects what they stand to gain, insurers could easily turn disclosure into a win-win.

Ironically, they keep insisting that policyholders dislike publicity but how then do foreign companies successfully get real clients to publicly share life-changing testimonials?

In an industry desperate to deepen penetration still hovering below 1%, this strategy of facelessness may be doing more harm than good.

Insurance is about people. And when people are missing from the narrative, the public assumes the worst: that the numbers are inflated, that payouts are selective, or worse, that the funds aren’t reaching real Nigerians.

Lessons from Elsewhere: The Power of Testimony

In more mature markets, showcasing the human impact of insurance is a key tool for building credibility.

In the United Kingdom, for example, life insurance companies often publish real-life testimonials (with consent) to show the emotional and financial relief their products offer. Emma Wilson, a Manchester teacher, shared:

“When my husband died unexpectedly, his life cover was what saved us. I used the money to pay off the mortgage and keep our children in school.

In Kenya, small business owner David Kamau told a local paper:

“My barbershop burned down in a power surge. I thought I had lost everything. My insurer paid the claim within two weeks. I reopened and even expanded. Insurance saved my business.”

These stories are not marketing gimmicks, they are proof. They are what inspire others to buy policies, not just because they are compulsory, but because they work.

Why Nigeria Must Catch Up

If Nigeria’s insurers truly want to be taken seriously, they must move beyond citing big numbers and adopt people-focused storytelling. A few anonymous testimonials won’t cut it anymore.

Yes, consent is crucial. But insurers can easily ask for and obtain permission from satisfied claimants who are willing to share their stories especially when those stories involve restored livelihoods, covered medical emergencies, or rescued families. In a country where trust in institutions is low, transparency is not just ethical it is strategic.

The current approach reinforces public suspicion that insurance is a paper system big on theory, short on proof. And when government policy tries to enforce compulsory insurance for vehicles, buildings, or employees, it begins to feel like coercion instead of protection.

A Sector with Promise, But Image Problem Persists

It would be unfair not to acknowledge the impressive growth the sector has seen. The group life insurance line continues to be the most lucrative in the life business, while the non-life segment, especially oil and gas and fire insurance, drove strong quarter-on-quarter increases.

The regulatory environment under the guidance of NAICOM has also been widely praised for pushing modernization and compliance.

Yet the missing piece remains: public confidence.

As long as the insurance industry continues to treat claimants like confidential transactions rather than champions of the system, it will struggle to gain the emotional and cultural acceptance it desperately needs.

Final Thought

For a sector that exists to offer peace of mind, security, and dignity in crisis, the refusal or failure to showcase the very people it protects is a contradiction. If the Nigerian insurance industry wants to be more than a ledger of transactions, it must start putting names and faces to its success.

Only then will the public begin to believe not just in the numbers, but in the system itself.