AMID ECONOMIC CHALLENGES: MUTUAL BENEFITS PAYS N25BN CLAIMS IN 9 MONTHS

Underwriting firm Mutual Benefits Assurance Plc and its subsidiary, Mutual Benefits Life Assurance Limited, have demonstrated stability in the insurance sector by paying N25.63 billion in claims during the first 9 months of 2024.

This comes amid a challenging economic landscape where businesses face numerous difficulties, including inflation and currency fluctuations, threatening their competitiveness and survival.

By consistently fulfilling its claims obligations, Mutual Benefits has shown resilience and commitment to its policyholders, establishing itself as a trusted provider in a turbulent market.

The claims breakdown shows that Mutual Benefits Assurance Plc, the general business arm, paid N7.14 billion, while the life business arm paid N18.49 billion. This includes N12.06 billion for deposit administration and N6.42 billion for insurance contracts.

Further breakdown of the general business claims reveals that the company paid N1.77 billion for motor business, followed by N1.38 billion for fire. Other payouts include N1.33 billion for general accidents, N1.16 billion for marine, N715.81 million for aviation, N706.75 million for engineering, and N78.35 million for oil and gas, among others.

“This steadfast performance not only underscores our robust financial management capabilities but also highlights our dedication to building customer trust and adapting to the dynamic needs of the Nigerian economy,” said Femi Asenuga, MD/CEO of Mutual Benefits Assurance Plc.

He further stated, “By consistently meeting our claims obligations, we have been able to build trust with policyholders, which has not only increased customer loyalty and retention but has also brought us new clients.”

“We have ensured excellent customer service through our processes, which has enhanced client satisfaction and fostered long-term relationships, crucial for retention in tough economic times.”

Commenting on the life business, Biyi Ashiru-Mobolaji, MD/CEO of Mutual Benefits Life Assurance Limited, noted that the major revenue sources were from group life insurance, with claims of N5.21 billion, and individual life business, with claims of N994.39 million during the 9-month period under review.

“When an insurance company pays claims promptly, it reflects positively on its reputation and fosters customer loyalty," Ashiru-Mobolaji stated, adding that prompt claims processing differentiates companies in a crowded market, attracting potential customers and referrals.

“Efficient claims handling indicates a well-run organization, which has been our focus. This is why we continue to invest in technology, staff training, and processes,” he explained.

Nigeria's economy heavily depends on oil exports, which contribute significantly to government revenue and foreign exchange earnings. This reliance, however, makes the economy vulnerable to fluctuations in global oil prices, with domestic effects like high inflation leading to increased costs of goods and services.

“We understand the impact these can have on our clients’ lives and businesses. Our ability to meet our claims obligations is a testament to our operational efficiency and the trust our clients place in us,” Ashiru-Mobolaji added.

As the year progresses, Mutual Benefits remains committed to safeguarding the interests of its policyholders and contributing to the growth and stability of the Nigerian insurance industry.

The 29-year-old organization is a leading brand in the Nigerian insurance industry, renowned for its swift and reliable claims settlement.