The Nigerian Liability Insurance Pool (NLIP) is boosting the capacity of its member companies to increase their risk appetite for various liability risks impacting on businesses and economy.
At its 11th Annual General Meeting held in compliance with Covid-19 restrictions, the Pool considered the need for more encouragement of its members to continue to provide the balancing factor for risks underwritten by members.
“We will brace up and work out measures such as enlightenment programs and seminars that would further strengthen our income, as well as attract new members to join the Pool, not forgetting partnering with members to ensure improved cessions of policies like Professional Indemnity, Directors’ and Officers’ Liability, Occupiers and Builders’ Liability as well as Employers’ Contingent Liability to the Pool.
Adetola Adegbayi, chair person of NLIP said the Pool operates on the principle of “follow the members’ fortune”, where its businesses and operations are robustly dependent on the support and performances of the members, therefore urging member companies to use the capacity of the Pool to improve their revenues by pushing sales of liability and casualty products.
“It is my plea that as members use the Pool to expand their risk appetite for comprehensive liability risks, they would cede into the Pool to enhance its growth.”
Adegbayi, while announcing the results to the members at the hybrid meeting said the joint management balance sheet witnessed growth in some of its class of businesses in comparison with 2019. The Pool witnessed growth in some of its class of business such as: Motor/Third Party Liability 11.42 percent; Workmen’s Compensation: 10.56 percent; Professional Indemnity 35.45 percent; Occupiers’/Builders’ Liability: 27.29 percent; Directors’ and Officers’ Liability 88.78 percent.
“It is my believe that the Pool Managers, with continued efforts, will be able to do better in years to come, Adegbayi stated.
Nigerian Liability Insurance Pool started in 1988 by an association of some reputable insurance companies with the objective of domesticating liability risks within the industry.
Then, the industry was facing the challenge of getting overseas reinsurance for liability risk and so they thought of coming together as a pool to bridge the gap and underwrite that class of risks. The pool is an aspect of reinsurance. It is not the conventional reinsurance, so you can say is a quasi reinsurance.
But, their duty is to cover the risk of their members alone and not the entire industry. From the pool, members that suffer losses are assisted to pay their claims. Specifically, the pool focuses on liability aspect of motor insurance, public and product liability, liability aspect of contractors-all-risk and workmen’s compensation insurance.
The pool has gone through a lot of transformation in membership beginning from 2001 and recapitalisation in 2005 and finally consolidation in 2010, now having many members, and being described as probably the only surviving pool in the African market.