Nigeria’s insurance industry is optimistic of hitting N1 trillion milestone on gross premium at the end of 2023 financial year.
This is premised on a strong performance at the end of third quarter (Q3) 2023, which figures from the National Insurance Commission(NAICOM) show that the industry had at the third quarter overshoot its full year performance in 2022.
Rasaaq Salami, head, Corporate Communications and Market Development at NAICOM, quoting the Commissioner for Insurance, Sunday Olorunda Thomas during a media briefing shortly after Insurers Committee Meeting held in Lagos, said the industry has done well both in the area of gross premium income and in claims payment in 2023.
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Giving the breakdown of the industry performances since 2021 till date, Salami he said, “In 2021 we had gross premium income of N621billion and by 2022 we had N726 billion and by half year of 2023 we had N551 billion.”
With third quarter report, we have already exceeded the annual premium of last year 2022 and by the time we close this year, we might be hitting the N1trillion mark and based on that assessment, we think the industry has performed very well, Salami said.
He said “we may not be where we are supposed to be but we have moved from where we were to another height.”
Ebelechukwu Nwachukwu, chairman, sub-publicity committee of the Insurers Committee listed digitalization, product development, on-going engagements with stakeholders as some of the focus of the industry in 2023 which has continued to impact on growth and volume of business written in the industry.
She noted further that customers now have various platforms to reach their insurance companies more than ever before, while assuring that more of these channels will be introduced to increase insurance penetration and business in the industry.
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She noted that ‘customer is serious’ is the focus of almost all underwriters not just selling the products, but also customers experience when they do business with insurance companies.
Tope Smart, group managing director/CEO, NEM Insurance Plc commenting on the performance of the industry, said he agrees with NAICOM that the industry has done well.
“We are moving forward, we are breaking barriers, we are getting more customers who have begun to appreciate insurance through some of the awareness creations we continue to embark on, he said.
“Don’t forget that in past years, insurance industry image was badly damaged, but today things have changed though we are yet to get to our destination.”
“I think, we have made a lot of progress, and I believe we can do much more than what the commissioner said, Smart noted.
Smart said, insurance awareness like I said earlier will help insurance uptake when more people become aware of the benefits of insurance.
“In terms of being responsive, the industry is up on the game now more than before. This is reflected in the way claims are being paid promptly. Claims are being paid as at when due by quite a lot of insurance companies and that is impacting on consumer confidence in the industry, he said.
Ebelechukwu Nwachukwu, speaking further on efforts to grow the industry, she said the Insurers Committee looked at the 10-years insurance development road map, which emphasized the significance of continuous improvement in risk-based supervision for the growth of the insurance industry and the implementation of risk-based pricing.
She said that the committee’s transformation roadmap includes proposals for increased awareness, enhanced market conduct, insurer partnerships with telecommunications and non-insurance channels, digitalization improvements, and the deepening of the talent pool within the insurance sector.
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According to her, NAICOM has mandated the Nigerian Insurers Association (NIA) to publish details of insurance companies’ outstanding claims in prominent newspapers.
According to her, this initiative aims to enhance policyholders interest and confidence in putting up claims for matured risks.
The NIA is given a two-week’s timeline to execute the publication, with a three-month monitoring period to assess improvements. If progress is lacking after three months, regulatory action may be taken, Salami added.
According to him, reports from the insurance companies are that some of these outstanding claims are not as if the companies are not really ready to pay, but that the policy holders have not come up with appropriate documentations to conclude on the process. And that is why we gave this directive from the insurance committee that it should be done, Salami further noted.
