Insurance experts have cautioned that the growing incidence of Ebola Virus Disease (EVD) resulting in deaths of affected patients, if not checked soonest could result to hike in premium rates for life insurance, as well as more vigorous health screening for potential life buyers.
Analysts however said that premium hike is not likely to come soon as there has not been any known claims experience resulting from Ebola case that should lead to serious concern for rate increase.
According to Kola Ahmed, director general, Chartered Insurance Institute of Nigeria (CIIN) said though he was yet to hear any claim coming to the industry as result of Ebola case, but it should not be taken for granted.
“We at the Institute are conscious of the whole issue, and that was why we had to call of the Institute’s 2014 Picnic last Saturday in line with Federal Governments efforts to curtail the spread through much body contacts”.
Ahmed stated that the life Offices Committee of the Nigerian Insurers Assiation (NIA) should join hands with other stakeholders to raise awareness on personal hygiene and interpersonal relationship among people. “This will go a long way toward not only reducing the spread, but also reduce what could become possible negative impact on insurance in terms of claims.”
Another insurance consultant, Obinna Chilekezi, managing director, Uberima Nigeria Limited, said anything that results to death of the insured like the Ebola Virus definitely would affect the life fund of insurance companies and that is why the insurance industry should be concerned about it. “They may not need to donate money, but they could help in creating awareness about health and hygiene methodologies to reduce the spread”
Chilekezi said life companies should engage their clients in wide publicity, may be through text messages, emails educating them that Ebola Virus is real; observe specific hygiene practices; in case contacted by a family member report to appropriate authorities and all that.
“This does not only help reduce possible future losses, it also enhances insurance industry responsiveness to customers and at the end of the day promote image of the industry,” he said.
Insurance experts said that in purchasing a life insurance cover, insurance companies have the right to request that the client go through a medical examination to know whether or not the person is qualified for the cover or what value of premium should be paid.
So, for clients with serious ailments, they are either denied certain policies or are made to pay higher premium than those who are not suffering such ailment.
Many consumers are frustrated to learn that, in most cases, and may be declined due to pre-existing medical conditions. Only group plans, such as employer-sponsored health plans, and certain government-sponsored options provide guaranteed coverage for every person irrespective of their medical conditions.
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