Insurance brokers, under the auspices of the Nigerian Council of Registered Insurance Brokers (NCRIB), have predicted that the outbreak of Ebola Virus in the country would lead to an increase in life insurance claims and ultimately reduce the profitability of insurance companies.
President of NCRIB, Mr. Ayodapo Shoderu, who made the prediction in Lagos, said it is not unexpected that life insurance claims would rise as a result of deaths from the Ebola Virus scourge. The will erode the profitability of the affected insurance companies.
Shoderu also said the brokers’ body was ready to complement federal government’s efforts at curbing the spread of the disease, particularly in the area of creation of awareness on how to stay safe.
He said: “The scourge will also have adverse effect on the insurance industry, going by the possible increase in compensation for life insurance. This will automatically lead to a diminution in the profitability of the industry and by implication a further reduction in its contributions to the nation’s GDP.”