Nigeria's financial stability and insurance market credibility depend on effective claims investigation, assessment, and settlement. Loss adjusters provide an independent technical assessment of insurance claims, ensuring settlements reflect actual losses and policy terms. According to Ikechukwu Udobi, president of the Institute of Loss Adjusters of Nigeria (ILAN), this profession is crucial in promoting fairness, transparency, and accountability in claims settlement.
Loss adjusters serve as a critical link between insurers and policyholders, particularly for large and complex claims requiring specialized investigation and valuation. Udobi explained that their work helps sustain public confidence in insurance and strengthens the financial position of underwriting companies. He emphasized that loss adjusters are claims experts trained to investigate, assess, and issue reliable reports for claim settlements.
The ILAN president cited a major fire claim in the electronics sector valued at over N67 billion, which loss adjusters assessed and resolved at approximately N47 billion following detailed technical investigations. This case demonstrates how professional loss assessment can protect insurers from excessive financial exposure while ensuring genuine losses are recognized. Udobi noted that loss adjusters do not determine insurance coverage independently or create gaps in protection during claims assessments.
Instead, their responsibility is to interpret the contract between the insurer and the insured and evaluate the circumstances of a loss against its provisions. Udobi explained that what policyholders perceive as coverage gaps often relates to items or circumstances not included in the original insurance contract. He added that loss adjusters work based on the policy document, which is the contract between the insured and the insurer.
Under the claims assessment process, loss adjusters investigate incidents, establish damage extent, and submit technical reports to insurers for review and consideration. Depending on the arrangement, either the adjuster or the underwriting company issues a discharge voucher to the policyholder for acceptance. Udobi defended the withdrawal of discharge vouchers where fresh information emerges after an initial assessment, citing the need to establish claim authenticity and protect the insurance market's integrity.
Udobi also explained that adjustments to claimed amounts are guided by fairness, equity, and policy conditions. Factors like depreciation and policy excess determine the actual value payable, except where the policy provides for reinstatement. He stressed that registered loss adjusters are trained professionals regulated by NAICOM and their professional institute, and policyholders are engaged during the assessment process to explain policy provisions and manage expectations.
ILAN is seeking to strengthen the professional capacity and institutional standing of loss adjusters. Udobi said the institute had recorded progress under its BIRDS agenda since the current administration was inaugurated in October 2025. This includes a revised scale of fees agreement with the Nigerian Insurers Association and a strategic engagement with the Chartered Institute of Loss Adjusters in the United Kingdom.
Key points
- Loss adjusters play a critical role in protecting policyholders and preventing unjustified depletion of insurers’ funds in Nigeria.
- The profession promotes fairness, transparency, and accountability in claims settlement, essential to sustaining public confidence in insurance and strengthening the financial position of underwriting companies.
- ILAN is working to strengthen the professional capacity and institutional standing of loss adjusters through various initiatives.
