- Insurance Sector Records N235bn Premium in Nine Months
The Nigerian Insurance sector recorded N235bn gross written premium from January to September of the 2017 financial year, according to the National Insurance Commission.
In 2016, the sector recorded a gross written premium of N325bn.
According to figures from the commission, the contribution of insurance to gross domestic product in terms of penetration is currently 0.48 per cent.
The statistics revealed that most of the businesses done in the industry were by brokers, while 75 per cent of the businesses were from corporate clients.
NAICOM stated that it had the main objective to expand the insurance market.
It recalled that in 2010, Nigerian insurance sector was ranked fourth in Africa in terms of premium income; 10th in terms of insurance density (premium per capital); and eight in terms of insurance penetration.
The commission said the poor ranking in the international sector informed its decision to take some corrective steps.
NAICOM stated that it introduced the Market Development and Restructuring Initiative to cover the insurance gap and grow its contribution to the gross domestic product among other objectives.
It added that under the MDRI, the commission sought for the enforcement of the compulsory insurances.
NAICOM stated that the commission had signed agreements with several agencies such as the Federal Road Safety Corps.
It added that the management team paid a courtesy visit to Ogun, Gombe, and Kaduna state governments where possible collaboration was discussed.
NAICOM also noted that the commission was engaging the governors’ forum to use the machinery of state governors to drive the enforcement of compulsory insurance.
In October last year, it added that the commission inaugurated a technical committee consisting of representatives of NAICOM, the Federal Fire Service, state fire service from the six geo-political zones and the Nigerian Insurers Association that would drive the enforcement of public building insurance in the country.
It said the commission planned to further improve the level of compliance of compulsory insurance through developing and implementing framework for coordinated enforcement of compulsory insurance, and promoting a policy to facilitate public access to insurance services nationwide.