Underwriters’ premium hit N380 billion in 2016
The Nation’s insurance industry recorded premium income of N380billion in the 2016 business operations; against N311billion in 2015, representing a 22.2 per cent growth.
However, the sector witnessed new claims for the non-life segment, which rose by 7.03 per cent to stand at N54.65 billion compared with N51.06billion reported in same period of 2014, while gross claims experience for life business rose from N35.95billion in 2014 to N50.57billion in 2015 or 40.68 per cent increase.
The industry life insurance gross premium for the same period rose by 23.48 per cent to N134.07 billion in 2015, against N108.58 billion in 2014.
However, non-life insurance segment gross premium generation dropped from N184.97 billion in 2014 to N178.49 billion in 2015; resenting 3.50 per cent.
Revealing the results at the company’s 46th annual general meeting of the industry trade group, the Nigerian Insurers Association (NIA), in Lagos, the Chairman, Eddie Efekoha, explained that operations in 2016 were characterised by the fall in crude oil price, epileptic power supply, cut throat inflation, internal conflicts between herdsmen and farmers, a near comatose economy and prolonged recession.
He however was optimistic that despite the challenges posed by the economy, the industry will continue to be the preferred investment destination for reputable players in the global insurance market.
This is due to the suspension of the FRC corporate Governance Code; implementation and improved compliance with the “No premium No cover” especially by the federal parastatals and ministries departments and agencies (MDAs); improved anti-money laundering mechanisms; full implementation of international Financial reporting standards; and improved enforcement of compulsory insurance among others.
The Acting Director-General NIA, Lawunmi Idowu, revealed that during the year under review, the NIA engaged in several initiatives aimed at improving the business terrain thereby enhancing the growth of the industry.
He highlighted some of the initiatives as the Nigerian Insurance Industry Database (NIID), which has continued to record resounding success especially in the area of providing real time online solutions in eliminating fake insurance certificates from the market and verification of insurance documents.
According to Idowu, the platform is undergoing continuous enhancement to address some of the challenges thrown up in its implementation.
He said: “In our desire to extend the coverage to other states of the federation, we encountered the challenge of network coverage and internet connectivity. We are taking steps to resolve the issue through the deployment of USSD code,” he assured.
On the marine modules, he said: “The marine module has been running and members companies are daily uploading on the platform. At the end of May 2017, 33 member companies have uploaded 65,000 marine policies.”
He urged members to take advantage of the opportunities, noting that plans underway to bring other stakeholders into the scheme.
On the Nigeria Insurance Industry portal, Efekoha said the association is working on the establishment of a common platform for the sale of third party motor insurance policies.
He said the platform was demonstrated at the last association retreat of Chief Executive officers of member companies in March 2017, adding that the is working hard to ensure that all the issues raised are full addressed and NSICOM’s buy-in is obtained before the proposed launch date of July 1st.