NAIC raps brokers for unremitted funds causing unpaid insurance claims

By Zainab Iwayemi

Nigerian Insurance Agricultural Corporation (NAIC) has attributed the reason for delay or default in claims payment to unremitted funds on the part of brokers.

Jerome Olowoyeye disclosed this while speaking at the virtual Insurtech Business Series webinar themed, ‘AgriBusiness in Africa: Current Realities and opportunities for technology and insurance’.

Olowoyeye who spoke on behalf of her principal, Folashade Joseph, the managing director of Nigerian Agricultural Insurance Corporation (NAIC), noted that the corporation has plans already in progress to reinforce awareness of insurance programmes for farmers to benefit. He, however, noted that the strategies would be effective if brokers on their part can deliver as expected.

“Since three to four years, we have started the farmers’ sensitization process where we select some states in Nigeria yearly to sensitize farmers on the importance of AgriIsurance.

“However, unremitted premiums by brokers, is one of the major issues as premiums that are supposed to be remitted by brokers are not remitted. If these brokers don’t remit, it becomes a problem for insurance firms to pay claims to farmers.

“On the issue of poultry claims, farmers need to keep track or record of the number of mortalities. This would abet quick claim payment by insurance firms,” he added.

Commenting on the issue of trust as a factor that needs to be rooted deeply by insurance firms, Olowoyeye noted that NAIC has continually worked towards deepening trust in insurance firms. He added that in its effort to demonstrate this, NAIC has made itself open to all forms of partnership that would further help to reinforce AgriInsurance in Nigeria.

“The issue of trust has been a long problem in Nigeria. We have been able to reduce the trust between NAIC and insurance and we continue to synergize with stakeholders to work hand in hand in other to strengthen AgriInsurance in Nigeria,” he said.

In her analysis, Edobong Akpabio, an agro-entrepreneur in Nigeria explained that insurance is relevant in every process and stage involved in agriculture

“Insurance is a very important factor for any business that wants to thrive in Africa and for businesses that want to up their game because, if anything happens while on the farm, during distribution or transaction, insurance would be there to cover the business,” she said.

“In the process of exporting in Africa, insurance plays a huge role. There is a huge gap because the farmers believe that they should get claims immediately they have a problem. They don’t know that these things take time,” Victoria Madebor, group head, business development, Bank of Industry, added, while explaining reasons for delays in claims payment.

Highlighting the importance of technology in the industry, Thomas Njeru, co-founder, PULA, said the firm uses technology to reduce the cost of insurance firms, as well as to ensure that customers’ expectations are met.