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By Chiamaka Ajeamo
The Nigerian insurance firms for the period between 2016 and 2020 earned a total gross premium of N2.1 trillion, data from the Nigerian Insurers Association has revealed.
The data disclosed that the industry maintained steady growth over the years.
A breakdown of the report showed that life and non-life underwriters earned N316 billion, N363 billion and N413 billion in 2016, 2017 and 2018, respectively. They also recorded premiums of N490 billion and N520 billion in 2019 and 2020 respectively while the industry’s asset rose from N1.62 trillion in 2019 to N2.02 trillion in 2020.
An analysis of other figures showed that as of the end of 2020, policies held by individual Nigerians stood at 1,034,383, while corporate and non-individual policies was put at 891,128. Total policies written stood at 1,925,511, while the insurance penetration during the period under review was 0.72 per cent.
Commenting on this development, the Commissioner of Insurance, Sunday Thomas, said the industry was looking at a more positive outlook.
Thomas said the commission launched the Market Development and Restructuring Initiative project aimed at a comprehensive pursuit of development of the industry as well as ensuring full compliance with extant laws in respect of compulsory insurances.
He noted that the first phase of the project was successfully carried out in all the six geo-political zones in the country.
“The commission is committed to vigorously pursuing the continued implementation of compulsory insurances to which collaboration and support from all stakeholders is key towards achieving the desired goal,” he said.
He also noted that the commission was committed to ensuring adequate protection of policyholders as part of its core mandate.
“This effort has been taken in many fronts such as ensuring that genuine claims are promptly paid by insurers, ensuring financial soundness and viability of the insurers to protect investments, right pricing of insurance products, value for money, and use of technology for ease of transaction,” Thomas said.
He added that NAICOM was ensuring that all its operations were done online and real time by digitalising its processes and encouraging the industry to imbibe same.
