Mr Tella Adekunle, an Edo base insurance underwriter, says 2021 was a challenging one for insurance players as they had to device prudent means to address incessant risks and claims.
Adekunle said in Benin on Tuesday, that 2021 did not only witness the emergence of new variants of the COVID-19 but increased risks in the sector.
He listed the risk to include dilapidated roads, fire outbreaks, and buildings collapse, among others.
“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.
He noted that players in the sector had to introduce a Professional Reinsurers Association of Nigeria (PRAN RATE), in the year 2021, to tackle the increased 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.
“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.’’
