Insurance Premiums Increase 10% To N560 Billion

Insurance Premiums Increase 10% To N560 Billion

Insurance Premiums Increase 10% To N560 Billion

The Nigerian insurance sector has generated N560 billion from contracts signed for the 2021 fiscal year.
This was disclosed on Thursday during the 51st annual general meeting of the Nigerian Insurers Association in Lagos by Ganiyu Musa, the organization’s outgoing chairman.

During the meeting, Olusegun Omosehin, managing director/chief executive officer of Old Mutual Nigeria Life Insurance Company Limited, was elected as the new chairman of NIA.

“Despite these difficulties, the insurance industry continues to carry out its statutory function of financial intermediation and business restoration,” Musa said.

The amount of business written by member companies increased by 10%, from N508 billion in 2020 to about N560 billion in 2021.

According to Musa, the association had started the project in coordination with the National Insurance Commission.

He said the initiatives such as financial inclusion, micro-insurance, the association’s NIIP initiative and other strategic market development initiatives were expected to increase insurance uptake by the public.

Musa said the insurance industry recapitalisation exercise, which was incepted by the National Insurance Commission in May 2019, remained unresolved due to the court cases initiated by some concerned parties.

He said the association was not a party to the lawsuit, and it was its expectation that the cases would be expeditiously dispensed with.

He further stated, “We are also concerned about the uncertainty the delays have created, especially among our critical stakeholders, and we appeal to the litigants to sheathe their swords so that whatever the issues in contention are can be resolved through constructive engagement for a swift end to the matter in the interest of the insuring public and all stakeholders.”

He noted that the definition of capital for the purpose of the recapitalisation exercise was one of the major issues faced by member companies.

The definition of capital as encapsulated in the Insurance Act 2003 and the commission’s interpretation of the same had fallen far behind best practice in insurance and financial sector regulation and would be injurious to the member companies, he said.

He said, “The association subsequently engaged the commission on the need to find an acceptable definition of capital in line with what obtains in other jurisdictions. Presentations were subsequently made by NIA, NAICOM, and KPMG at the various sessions and the agreed position was presented to the Federal Ministry of Finance, Budget, and National Planning for inclusion in the Finance Act.

“We are delighted to report that with the President’s assent to the Finance Act 2021. We now have a more acceptable definition of capital.”

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