By 
In a landmark development set to reshape Nigeria’s insurance landscape, the Institute of Loss Adjusters of Nigeria (ILAN) has announced a significant upward review of its professional fees. This long-awaited change, the first in over three decades, will officially take effect on January 1, 2026.
The announcement was made by ILAN’s President, Ikechukwu Udobi, during a pivotal press briefing held in Lagos. Udobi highlighted that this crucial review wasn’t a unilateral decision but came as a result of extensive engagement and consultations with various key stakeholders across the Nigerian insurance industry.
A Long Overdue Adjustment
For more than thirty years, the professional fees for loss adjusters in Nigeria have remained stagnant, a situation that many within the industry have described as unsustainable. This prolonged stasis has posed significant challenges, impacting the quality of service, operational costs, and the overall attractiveness of the profession.
The new fee scale is expected to address these critical issues, bringing the remuneration of loss adjusters in line with current economic realities and global best practices. As Mr. Udobi emphasized, the goal is to ensure the continued viability of the profession, enable adjusters to invest in their capacity development, and ultimately deliver superior service to policyholders and insurers alike.
Why Now? The Driving Factors
- Inflationary Pressures: Decades of inflation have eroded the real value of the previous fee structure, making it increasingly difficult for firms to cover operational expenses.
- Industry Sustainability: A sustainable fee model is vital for attracting new talent, retaining experienced professionals, and fostering continuous professional development within the loss adjusting sector.
- Enhanced Service Delivery: Adequately compensated professionals are better equipped to invest in technology, training, and resources, leading to more efficient, accurate, and fair claims resolution processes.
- Stakeholder Collaboration: The engagement with insurance companies, brokers, and other relevant parties underscores a collective recognition of the need for this adjustment to strengthen the entire insurance value chain.
What This Means for the Industry
The implications of this fee review are far-reaching. While it may lead to some adjustments in operational costs for insurance companies, the long-term benefits are expected to outweigh these initial concerns. A more robust and professional loss adjusting sector will translate to:
- Faster and more equitable claims settlements.
- Improved public trust in the insurance industry.
- Greater transparency and professionalism in claims handling.
- A stronger overall regulatory and operational environment for insurance in Nigeria.
ILAN’s move marks a pivotal moment, signaling a commitment to modernizing the Nigerian insurance sector and ensuring that all components of the value chain operate at optimal levels. As the industry looks towards January 2026, there’s a sense of optimism that this change will usher in a new era of growth, professionalism, and enhanced service delivery for all stakeholders.
Your Thoughts?
What are your expectations for this new fee structure? How do you think it will impact the insurance landscape in Nigeria? Share your views in the comments below!
Source: Original Article
Comments