Insurance firms generate N630.36bn income in 2021 as assets grow to N2.139trn

The nation’s insurance industry appears to have started reaping the gains of its resilience as the various insurance companies continue to record higher income.

Figures released Monday by the National Insurance Commission (NAICOM), the body responsible for the regulation and control and control of insurance firms said that the various firms pulled an aggregate unaudited premium income of N630.36 billion for the 2021 business year.  This translated to an increase of N122 billion over the figure of N514 billion reported by the industry for 2020

NAICOM further disclosed that the total assets of insurance companies in the market grew to N2.139 trillion in 2021. The regulatory authority had gone further to revealed a total of N238.05 as claims paid within the period under review

It would be recalled that Chairman of the council of Nigerian Insurers Association (NIA) Mr. Ganiyu Musa had last week informed that insurance companies in Nigeria have continued to demonstrate capacity to support individuals and corporate organization in the area of mitigating losses as insurance companies raise the stake in paying genuine claims.

Ganiyu who made this known in Lagos said that insurance companies which operate under the umbrella of NIA have continued to demonstrate competence and professionalism leading to their honouring their claims obligation which he said, is the whole essence of insurance.

Mr Ganiyu said that the ability and willingness of insurance companies to settle most of the claims which arose from the 2020 #EndSars protest stands as testimonial to the capacity of the Nigerian insurance market to contain huge risks with many more individuals and corporate organizations now stepping forward to either insurance their risks or seek extensions to existing policies.

According to him, the 2022 business renewal session witnessed an upbeat in terms of number of both new and existing policies. He revealed that the various insurance companies have paid an aggregate of over N11 billion in claims on the #EndSARS protesting adding that many more of such claims are still been processed for payment. He the insurance industry’s 2020 premium income at N508 billion even as he was quick to observe then that the income for 2021 was still been computed.

“The business outlook for insurance market in 2022 is very bright. The downgrading of COVID-19 from pandemic, the opening of international business arena like in Australia, major aviation firms starting to hire again like the one which recently announced 6,000 job hire, growing investor confidence and investments which will translate to spending on insurance, ugly experience of the #EndSARS protest and the rest are teaming up to make people and organizations think more of insurance”, he emphasized.

He described as unfortunate, the events which characterized the raising of premium rates on fire insurance saying that the Professional Reinsurers Association of Nigeria (PRAN) was right in observing that loses and experience on fire policy should dictate the rate but noted the need for such review to be coordinated.

“During the last year, the Gross Premium Written stood at about N508 billion while claims paid by member companies amounted to about N224billion which is 44% of the total industry premium”, he further explained.

“Discussion is ongoing between the Association, NAICOM, Nigerian Shippers Council, Project IT Vendor-BrandOne and all other stakeholders in the maritime value chain including Shippers/ Importer, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies on provision of cover for containers.

This will be a risk management substitute for container deposits being made by the importer to the shipping companies thereby eliminating capital flight from the country.

“The Association is in discussion with Lagos State Building Control Agency (LASBCA) with a view to using the Nigerian Insurance Industry Database (NIID) Verification Platform for enforcement, verification, and validation of genuine compulsory Buildings Under Construction Insurances made mandatory by Law through Insurance Act 2003 (SECTION 64), and Lagos State Urban and Regional Planning and Development (Amendment) Law 2019 (Lagos State Urban and Regional Planning and Development Law, CAP U2 Lagos State Building Control Agency Regulations, 2019)

“The Association is collaborating with Lagos State Safety Commission (LSC), Nigerian Council of Registered Insurance Brokers (NCRIB) and Courteville on the Implementation, enforcement and validation of genuine compulsory Occupiers Liability Insurance made mandatory by Law for all public buildings through Nigerian Insurance Industry Database (NIID) Verification Platform. The exercise will be launched on 28April 2022 and Enforcement will commence in May 2022. We are building capacity of its members to enhance compliance in line with the emerging regulations.

“The Association will host this year’s IICC International Insurance Conference in Abuja from 3 – 5 July 2022.

The Deputy Chairperson of the Association, Mrs. Ebelechukwu Nwachukwu is Chairperson of the Organising Committee.

“The New NIA House is nearing completion and Building Committee chaired by Mrs. Ebelechukwu Nwachukwu has been saddled with the responsibility of organising the unveiling of the New NIA House. We also plan to use the occasion to mark the Association’s 50th Anniversary Celebrations”, Mr Ganiyu who double as the Managing Director of Cornerstone Insurance Plc explained.

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