The Nigerian insurance industry has paid a staggering N83 billion claim to Britannia-U Nigeria Limited following a massive fire incident on one of the company’s exploration platforms.
The payment was made by a consortium of underwriters after the claim was adjusted from an initial estimate of $72 million to $55 million.
The Commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, speaking at a seminar organised by National Association of Insurance and Pension Editors (NAIPE) in Abeokuta, Ogun State, commended the industry players for prioritising prompt settlement of genuine claims. He expressed pride in the industry’s ability to pay the claim, noting that it demonstrates the industry’s strength and credibility.
The fire incident occurred on the 4,000 barrels of crude oil per day capacity Britannia-U1 FPSO operated by Britannia-U Nigeria Limited, offshore Forcados in Delta State. Despite initial doubts about the industry’s capacity to pay the claim, NAICOM intervened, and the claim was settled in full.
The NAICOM boss emphasised the need for industry players to publicise claims paid to change the negative perception of the sector. He noted that billions are being paid in claims annually, but these payments are not being publicised, contributing to the negative perception.
The settlement of the Britannia-U claim is part of nearly N180 billion in large claims settled by the industry for corporate clients this year, aside from numerous smaller claims. The NAICOM boss commended the industry’s responsiveness and reliability in settling valid claims, highlighting the importance of trust and confidence in the sector.
The premium for the risk was $170,000, while the claim paid was $55 million (N83 billion), highlighting the significant impact of the settlement on the industry’s reputation.
NAICOM has been working to ensure that the industry provides more oversight functions and makes informed decisions, leveraging data and encouraging collaborations across institutions.
