Nigeria Liability Insurance Pool (NLIP) has called on government to come up with policies that galvanise the strength and build capacity of the nation’s risk management industry to be able to underwrite big tick risks.
The Pool said that the successful conclusion of the aborted recapitalisation exercise in the insurance industry would open more opportunity for growth and enhance contribution of the industry to the economy.
Adetola Adegbayi, chairman of the Pool during its 12th Annual General Meeting held in Lagos said government needs to make new progressive polices that will galvanize all players, reactivate and conclude the recapitalization exercise which will increase the capacity of the industry and allow big-ticket transactions to be underwritten.
Adegbayi said insurance companies as well should be creative and come up with customer-centred products.
“The opportunities that present themselves in the Nigerian economy are steadily growing, the government has increased capital expenditure and opportunities for financial inclusion of our large population are still very wide open.”
She stated that the industry will also need to continue to expand the coverage of cyber security as the wave of digitization grows across the Nigerian economy.
On the Pools performance for the year ended 31 December 2021, she said significant improvements were recorded in the cession of businesses from member companies.
“The classes of business that had significant increases are employers’ Contingent Liability (77.7 percent), Builders’ & Occupiers’ Liability (38.7 percent), Motor Third Party Liability (23 percent), Director’ & Officers’ Liability (6.0 percent), Public Liability (5.4 percent) professional Indemnity (4.6 percent). Workmen‘s Compensation was the only class with a reduction of 19 percent, it is worthy of note that the Pool’s Financials were prepared in line with the International Financial Reporting Standards (IFRS).”
Read also: #EndSARS: Insurable losses fall short of economic loss
To continue with this good performance and progress, she urged all member companies to do more by ceding adequately part of their businesses to the Pool as it is for her collective good and pride.
She said that the Pool has been actively working and engaging more insurance companies to become part of the fold. This is a collective function of all stakeholders as this is a major step in taking the pool to the next level in terms of productivity and profitability, she said.
Meanwhile, the meeting approved a surplus of 190 kobo per share of N1 each to members of the pool.
Looking into the future, she expects that the insurance industry Gross Premium Written will increase in the coming years, saying the Pool expects more cessions of businesses from member companies as their business portfolio increases. “Relationship building between the Pool and member companies is very crucial to achieve the aforementioned, she said.
“The addition of more/new members will verily reposition and make the Pool more visible within the insurance industry. The Pool has gone through a phase of physical restructuring and will continue the modification of its business process by being fully automated.”
