The nation’s insurance industry is looking to close 2019 financial year at N490.99 billion, as against N426.21 billion in 2018, according to provisional result released by the National Insurance Commision (NAICOM).
According to the Commission, total claims are expected to hit N330.37 billion, as against N252.19 billion in 2018.
The industry was also noted to have invested N1.13 trillion in the economy in 2019, as against N1.01 trillion in 2018.
There are currently 55 insurance companies in Nigeria, two re-insurance, three takaful and two microinsurance operators; with over 500 insurance brokers and 2,000 agents.
The Commission over the years in the course of discharging its duties and keeping to its mandate had incepted a number of initiatives, especially in the area of market development to boost insurance penetration and growth.
While a lot has been achieved by the Commission in this regards, there is a lot to be done if we must attain the desired goals as an industry.
According to NAICOM, these figures try to give clarifications especially to the vexed issue of non-payment of claims by insurance operators.
There is no denying the fact that there are indeed some cases of delays in the payment of claims by some operators, the Commission is however addressing such cases as soon as they are brought to our notice. It is for this reason that the Commission has strengthened its Complaint Bureau Unit in order to effectively address consumers’ complaints within the shortest possible time, Sunday Thomas, acting commissioner for Insurance said.
He noted that the Commission has also as a matter of deliberate policy adjusted its strategy to focus more on developmental issues than compliance issues going forward in the overall interest of all stakeholders.
“As you may have been aware, the Commission had in 2019 initiated the process to recapitalise the insurance industry in order to upscale its financial standing to meet up with current economic realities and avoid imminent systemic collapse and solvency crisis in the insurance sector.”
According to him, this will ensure that the industry becomes more robust in its technical competence and financial base, build confidence, trust and enhance market value. It is further aimed at repositioning the sector for self-actualization in terms of growth and development. The process is expected to be concluded by 31st December, 2020, Thomas said.
In 2009, the Commission launched the Market Development and Restructuring Initiative (MDRI) 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 carried out in all the six geo-political zones in the country, while the second phase of the MDRI project according to NAICOM will soon be unveiled and hope to mark out clear targets and tasks for all stakeholders in the industry.
The Commission is committed to vigorously pursue the continued implementation of Compulsory Insurances to which collaboration and support from all stakeholders is keyed towards achieving the desired goal, the Commission promised.
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