#EndSARS destructions: Insurers may seek FG’s support to pay claims

Insurance companies may seek federal government’s support to pay claims that may arise from losses emanating from destructions of lives and properties during #EndSARS protests nationwide.

Investigation by the Blueprint showed that the losses caused during the protests in various parts of the country are monumental and the claims that may likely emanate from the losses for settlement by insurance companies are colossal.

While some Industry operators who spoke in an interview with our correspondent, expressed displeasure on the incident, others said the situation is an opportunity for the industry to prove to the insuring public that insurance works in Nigeria.

The Managing Director and Chief Executive Officer of Law Union & Rock Insurance, Mr. Ademayowa Adeduro, described the destructions as first of its kind since the Civil war and recommended that the industry should seek for Federal Government support to meet its obligations.

“The loss is colossal and I’m not sure whether we have witnessed this before apart from the Civil War era. The destructions are massive and because there was curfew, the perpetrators had a field day going around looting, setting houses, banks, shops on fire. Insurance industry is going to pay heavily for it.

Also speaking, the General Manager, Marketing and Corporate Communications, Sovereign Trust Insurance Plc, Mr. Segun Bankole, said although the incidence is going to affect the industry negatively, will open the eyes of a lot of people to the importance of insurance.

Mr. Bankole who described the timing of the incidence as “very bad” for the industry especially with the ongoing recapitalization, noting that this is not the right time for this to happen for the industry.

“It is unfortunate that this is coming in a very bad time; the time when the industry is undergoing recapitalization and with the situation on ground, they are going to be paying out a lot of claims and how do you now get funds to recapitalize?

“Obviously, by the time you begin to pay claims, it will affect your bottom-line; it will affect your reserve and this is not a very good thing for the industry. We just hope that insurance industry will now know the importance of proper rating. This situation has thrown up a lot of issues for the industry: how well do you rate? How well do you value your business? But in all, this is not the good time for all these to happen especially now that operators are trying to cross the first hurdle of the recapitalization exercise,” Bankole  .said

Also speaking, the Executive Secretary, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Fatai Adegbenro, described the incidence as a good omen for the industry to prove to the insuring public that insurance works.

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