The National Insurance Commission (NAICOM) has revealed plans to grow the industry’s gross premium income (GPI) from N630 billion in 2021 to N6 trillion by the year 2030 but cashing on the support of stakeholders and operators to develop a sustainable initiative for deepening penetration.
This was contained in a paper delivered at the 2022 Industry Retreat by the Head, Corporate Communications and Market Development, NAICOM, ‘Rasaaq ‘Salami.
He said besides increasing GPI to N6 trillion by 2030, the Commission would intensify the use of insurance as a strategic tool for stimulating growth in other areas of the economy.
However, he noted that the structures being put in place by the commission would boost confidence in the sector and lower the insurance gap from 94 per cent to 70 per cent.
He added that the market development remains capital intensive and as such needs a huge capital injection to sustain it.
He explained that various actions to expand the reach or tap into different segments and markets, including the retail end, are in place.
According to him, the actions include market conduct, bancassurance, Takaful insurance and microinsurance.
He also said there was a collaboration between the Nigeria Police Force (NPF) and the commission on the enforcement of compulsory insurance across the country.
The Commissioner for Insurance/Chief Executive of NAICOM, Sunday Thomas, said the Commission would commence ranking insurance firms based on the number of claims received and settled yearly.
He regretted that though the industry was doing well in claim payments, the activities of some of the operators remained a challenge.
“Claims payment has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims even though the activities of a few are jeopardising the efforts of the majority,” he noted.