Operators in the Nigerian insurance sector are bracing up for likely claims arising from wanton attacks on bank facilities and personnel across the country over the Naira redesign crisis. The concern in the market is that the violence if left unchecked could lead to huge claims against insurance companies if the attacked facilities had insurance cover.
Mr. Mayowa Adeduro, Managing Director/CEO of Tangerine General Insurance Limited aligned with the stated benefits of the Naira redesign policy of the CBN but also raised posers as events took a negative dimension over the cash crunch.
Mayowa said: “There is absolutely nothing wrong in redesigning Naira and obviously shouldn’t have negative impact on the economy including insurance industry. However, the spate of violence and destruction following demonstrations ostensibly from shortage of cash currency and poor services from electronic transfer is impacting insurance industry negatively. We are expecting a spike in the claim for riot and civil commotion.”
In same manner, Mr. Tope Adaramola, Executive Secretary, the Nigerian Council of Registered Insurance Brokers (NCRIB) added his voice:
“Apart from affecting the financial solvency of the people, including insured or would be insured, the policy has heated up the system leading to violent insurrections in some parts of the country where properties, some of which were insured were destroyed. Insurance companies would have to respond to those perils if they are insured.”
Another analyst who requested anonymity urged insurers to expect request for claims if the destroyed facilities were insured.
He said: “If the bank buildings destroyed by angry protesters and depositors were insured, then surely the banks will file for claims and it would be difficult for the insurance firms that provided such cover not to comply.”