The National Insurance Commission (NAICOM), is relentless in its efforts to achieve its target for insurance operators in the country to grow annual insurance premium to N6 trillion by the year 2030 from the present level of N630 billion, THISDAY checks has revealed.
Following NAICOM’s relentless effort, the sector’s assets has witnessed massive growth reaching N2.14 trillion within the past six years.
Latest data released by the umbrella body of insurance underwriters, the Nigeria Insurers Association (NIA) showed that in the past five years the insurance sector has grown it’s assets by N1.17 trillion.
While addressing journalists at a media forum held in Uyo Akwa Ibom State recently, the commissioner for insurance, Mr Sunday Olorundare Thomas said his N6 trillion projection for the sector was hinged on notable developmental initiatives already embarked upon by the regulator to stimulate the sector.
The NIA data revealed that the sector had successfully grown it’s total assets to N2.14 trillion in 2021.
According to the umbrella body of insurance underwriters, underwriters’ total assets between 2016 to 2021 rose from N974.09 billion in 2016 to N2.14 trillion in 2021, showing an increase of N1.17 trillion.
According to NIA, insurance companies recorded tremendous growth on their assets within the period siting Leadway Assurance Limited, which increased its total assets by N357.13 billion between 2016 and 2020, moving from N166.06 billion to N523.19 billion.
Also, FBN Insurance Limited also increased its total assets by N129.63 billion between 2016 and 2020, from N29.51 billion to N159.14 billion; AIICO Insurance Plc increased its by N120.52 billion from N75.82 billion to N196.33 billion; Custodian Life Assurance Limited, recorded N73.67 billion assets increase from N24.67 billion to N98.34 billion and Cornerstone Insurance Plc, achieved N18.11 billion growth from N18.37 billion to N36.48 billion.
On its part, NEM Insurance recorded an increase of N16.64 billion from N14.53 billion to N31.17 billion; Mutual Benefits Life Assurance, N16.46 billion from N36.18 billion to N52.64 billion; Mutual Benefits Assurance Plc, recorded N13.74 billion from N16.58 billion to N30.32 billion; Linkage Assurance Plc, recorded N13.55 billion growth from N20.33 billion to N33.88 billion while African Alliance Insurance Plc, grew assets by N12.66 billion from N41.35 billion to N54.02 billion.
Others are: FBN General Insurance Limited, which grew it’s assets by N9.9 billion from N6.06 billion –toN15.96 billion, NSIA Insurance Limited, grew by N8.97 billion from N13.15 billion N22.12 billion; Custodian & Allied Insurance Limited, grew by N8.14 billion from N29.68 billion to N37.82 billion, Anchor Insurance Company Limited, grew by N7.74 billion from N5.78 billion to N13.55 billion and Coronation Insurance Limited, by N7.56 billion from N20.59 billion toN28.15 billion.
Unitrust Insurance Company Limited grew by N7.18 billion from N11.54 billion to N18.72 billion and sovereign Trust Insurance Plc, by N5.32 billion from 9.511 billion to N14.83 billion.
NAICOM said unaudited Gross Premium Income (GPI) for the insurance industry stood at N630.36 billion in 2021, as against audited N514 billion recorded in 2020.
The Head, Corporate Communications and Market Development, NAICOM, Rasaaq Salami, informed that the industry also paid net claims of N238.05 billion in 2021 with sector’s total assets hitting N2.139 trillion.
Salami, said NAICOM would deepen the use of insurance as a strategic tool for stimulating growth in other facets of the economy and ultimately generate revenue for the government.
Given this performance Thomas has called on Nigerians to report underwriting companies that fail to pay genuine claims to policyholders as and when due.
Thomas, said there was an urgent need to rewrite Nigerians’ poor perception about insurance to increase uptake of insurance products.
He disclosed that the Commission was planning to start ranking insurance firms based on the number of claims filed and settled yearly.
The Commissioner lamented that though the industry was moving ahead in claims payments, the activities of some operators remained a task.
He said, “Claims payment has always been one aspect the industry has been battling with. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims even though activities of a few amongst the operators are jeopardising the efforts of the majority. We had before now, agreed to start ranking companies on the number of claims received and settled every year and we intend to make the ranking a public knowledge for the insurance consumers. It is always an issue that puts the entire industry on the edge.”
He explained that the commission has been implementing various market developmental initiatives to lift the insurance sector to a global standard through risk-based supervision framework, digital capabilities and others.
