Madison and Jubilee insurance companies have the highest claims payment ratio for liability and non-liability claims, compared with the rest of the industry, the latest data from the regulator says.

“The quarterly claims settlement statistics summarise claims data into the number of claims outstanding at the beginning of the quarter, the action taken during the quarter, and the number of claims outstanding,” IRA said in its quarterly update.

Claims payment ratio determines the likelihood of policyholders being paid in case of exposure to a risk they are insured for.

A liability claim occurs when an insured party reaches out to an insurer for help with a third party’s allegation that the insured is responsible for some loss or damage.

Madison, which offers both health and general insurance, paid 61 per cent of all its non-liability claims in the first quarter of the year, up from 51 per cent in the last quarter of 2021.

The company also has one of the lowest outstanding claims, compared with other industry players. Outstanding claims stood at 340 at the end of the first quarter of the year, compared with 20,000 for some insurance companies. The company paid 543 claims in the first quarter of the year, carried forward 424 claims from last year, and filed and revived 459 claims in the same quarter. 

Highest performer

Jubilee, on the other hand, had the highest settlement of non-liability claims at 90 per cent of all the claims lodged. This means customers have a higher chance of being paid when they register a claim.

This comes after a court ruling that said failure by an insurance company to pay or compensate policyholders will be a criminal liability on the industry regulator.

Delays by Amaco Insurance, X-Plico and other industry players to honour customer claims have rattled the industry to the benefit of the established players.

Allianz, Heritage, AAR, and ICEA were also among the top payers of claims, especially in the non-liability category.

Resolution Insurance, which closed a few months ago, had among the highest claims payments record as its assets were auctioned to clear claims.

In the first quarter of 2022, the claims payment ratio for general liability reduced to 6.9 per cent.“The payment ratio for general non-liability claims remained stagnant at 77.1 per cent,” the report notes.

The claims payment ratio for long-term insurance business dropped to 70 per cent, compared with 74.6 per cent in the previous quarter. 

Meanwhile, the industry has recently experienced consolidation, with foreign companies acquiring local players to tap the region’s growing market.