Insurance firms rake in N2.1tn premiums in five years – Report

Nigerian insurance companies earned a total gross premium of N2.1tn between 2016 and 2020, according to figures obtained from the Nigerian Insurers Association on Monday.

The data showed that the industry maintained steady growth over the years.

The report revealed that life and non-life underwriters earned N316bn, N363bn and N413bn in 2016, 2017 and 2018, respectively. They also recorded premiums of N490bn and N520bn in 2019 and 2020 respectively.

 The Nigerian insurance industry’s asset rose from N1.62tn in 2019 to N2.02tn in 2020.

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.

The Commissioner for Insurance, Mr Sunday Thomas, said the industry was looking at a more positive outlook.

He 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.

The first phase of the project was successfully carried out in all the six geo-political zones in the country, he said.

 “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 said that the commission was committed to ensuring adequate protection of policyholders as part of its core mandate.

The commissioner said, “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.”

He said NAICOM was ensuring that all its operations were done online and real time by digitalising its processes and encouraging the industry to imbibe same.

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