Big news is brewing in Nigeria’s insurance sector! After three decades of operating on the same professional fee scale, the Institute of Loss Adjusters of Nigeria (ILAN) has finally announced a significant upward review. This pivotal decision is set to take effect from January 1, 2026, marking a new chapter for the industry.
The announcement was made by ILAN’s President, Mr. Ikechukwu Udobi, during a recent press briefing held in Lagos. Mr. Udobi emphasized that this long-awaited review wasn’t a unilateral decision but rather the culmination of extensive and collaborative engagement with various stakeholders across the insurance industry. This inclusive approach underscores the institute’s commitment to ensuring fairness and sustainability for all parties involved.
Why Now? A 30-Year Wait Explained
For three decades, loss adjusters in Nigeria have operated under a fee structure that, arguably, no longer reflects the economic realities, the complexity of modern claims, or the invaluable expertise they bring to the table. Loss adjusters play a critical, often understated, role in the insurance ecosystem. They are independent professionals responsible for assessing the extent of loss or damage in an insurance claim, ensuring fair and accurate settlements for both policyholders and insurers.
Over the past thirty years, Nigeria’s economic landscape has transformed dramatically. Inflation, technological advancements, increased risk complexities, and the evolving nature of insurable assets have all contributed to the growing demands on loss adjusters. Maintaining a robust, skilled, and ethical professional body requires fair compensation that attracts new talent and rewards experienced adjusters for their diligence and specialized knowledge.
The Impact of the Review
This upward review is expected to have several positive ripple effects:
- Enhanced Service Quality: Fairer remuneration can lead to greater investment in professional development, technology, and resources, ultimately improving the quality and efficiency of claims assessment.
- Attracting Talent: A more competitive fee structure will make the profession more attractive to young graduates and experienced professionals, ensuring a pipeline of skilled loss adjusters.
- Sustainability of the Profession: It helps safeguard the financial viability of loss adjusting firms, enabling them to operate sustainably and continue providing essential services to the insurance industry.
- Industry Modernization: It aligns Nigeria’s loss adjusting standards more closely with global best practices, fostering greater confidence in the local insurance market.
The insurance industry, policyholders, and indeed the entire economy stand to benefit from a stronger, more vibrant, and fairly compensated loss adjusting profession. While the effective date is still a couple of years away, this announcement signals a forward-thinking move by ILAN and a commitment to bolstering the foundational pillars of Nigeria’s insurance sector for decades to come.
Source: Original Article
