Mr Tella Adekunle, an insurance underwriter in Edo, says the year 2021 was a brainstorming one for insurance players as they had to device prudent means to address incessant risks and claims.
Adekunle said in Benin on Tuesday that the year 2021 did not only witness the emergence of new variants of the Covid-19 virus but also increased risks such as dilapidated roads, fire outbreaks, 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.
“We equally during the year, 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 which not only insurers but also their reinsurers have had to meet as required.
“Mainly, 2021, unlike 2020, was a challenging one for the insurance sector which constantly devices means to improve by learning from experience”.
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 rate 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.”
