Insurance valuation is a crucial process drive in Nigeria – ESV. Osheka Joy

An Estate Surveyor and Valuer ESV. Osheka Joy said
Insurance valuation is a crucial process driven by professional expertise and legal requirements under the new Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025).

She said that the act mandates professional valuations to accurately determine reinstatement costs, fair indemnity values, and risk exposure, ensuring that assets are neither underinsured nor overinsured.

ESV. Joy stated this in Abuja yesterday .

She pointed out that in carrying out insurance valuation, standards must be maintained in line with international best practices.
“This is why the nature and location of the property to be insured must be evaluated based on the method of valuation that suits the property”.

She emphasized that in the most advanced economies in the world, there are government policies put in place to regulate the business of property insurance. “The aim of this,is to ensure seamless transactions between different professionals involved in property valuation and insurance. In the Nigerian business environment, there is a need for such regulatory policies to be in place, and the roles of estate surveyors and valuers in property insurance are clearly defined”.

She noted that property insurance valuation is professionally carried out by a professional estate surveying and valuation firm with the sole aim of ascertaining the current market value of the property for insurance purposes.

She said that Estate surveyors and valuers play a vital role in transforming from traditional consultants to strategic partners in risk management.
“ They also enable a more transparent and efficient insurance ecosystem, especially with the integration of new technologies”.
She said some of the key aspects of insurance valuation in Nigeria are : Mandatory professional valuation: NIIRA 2025 requires professional valuation for insurance coverage, acknowledging the essential role of valuers in assessing reinstatement costs, fair indemnity values, and risk exposure.
• Ensuring accuracy in valuation reports: The goal of these valuations is to prevent underinsurance or overinsurance, which protects both policyholders and insurers.
Legal reinforcement: Section 58 of the new act mandates actuarial valuation and reporting, further emphasizing the importance of precise property valuation in determining liabilities and premiums.
• Role of Estate Surveyors and Valuers: These professionals are becoming strategic partners in risk management, essential for the built environment and the overall insurance ecosystem.
Impact of inflation and devaluation: Recent growth in the Nigerian insurance sector has been significantly influenced by the need to reprice policies due to inflation-adjusted asset replacement costs and the devaluation of the Nigerian naira, which affects foreign currency-denominated policies and Digital integration: The new law encourages digital innovation, creating opportunities for valuers to collaborate with technology platforms and expand their reach in the market.
She also mentioned some role of valuation in property
insurance.
“The only way a property can be professionally insured is to know its current market value. Thus, the role of valuation in all forms of property insurance cannot be overemphasized. By default, residential, commercial, and industrial properties ought to be evaluated by a professional estate surveying firm and insured by a professional and licensed insurance company”.
According to her, It is vital for properties to have adequate and up to date insurance coverage.
“With this, the market value is not only retained, but the property is protected in the event of a disaster, and the insurance coverage matches what is needed”
“For insurance companies to carry out the business of property insurance, a valuation report must be a guiding compass in their decision-making processes. I make bold to state here that any property insurance carried out without a valuation report from a professional firm of estate surveyors and valuers is far from reporting and insuring reality”.
She said that there is a need for estate surveyors and valuers and the insurance companies to form synergy that will mutually serve the interests of both professions for their common good and the collective gain of the stakeholders”.

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