By the conclusion of the 2023 fiscal year, the insurance sector in Nigeria hopes to have gross premiums of N1 trillion.
This is predicated on a robust performance at the conclusion of the third quarter (Q3) of 2023, as indicated by data from the National Insurance Commission (NAICOM), which indicates that the sector outperformed its 2022 full year performance at the third quarter.
During a press briefing shortly after the Insurers Committee Meeting held in Lagos, Sunday Olorunda Thomas, the Commissioner for Insurance, was quoted by Rasaaq Salami, head of Corporate Communications and Market Development at NAICOM, as saying that the insurance industry performed well in 2023 in terms of both gross premium income and claims payment.
Salami provided a summary of the industry's performance from 2021 to the present, stating, "We had gross premium income of N621 billion in 2021, N726 billion in 2022, and N551 billion in the first half of 2023."
According to the third quarter report, we may reach the N1 trillion mark by the end of this year and have already surpassed the yearly premium of 2022. Based on this assessment, we believe the industry has done quite well, stated Salami.
"We may not be where we should be, but we have risen above where we were," he remarked.
Digitalization, product development, and ongoing stakeholder interactions were identified by Ebelechukwu Nwachukwu, chairman of the Insurers Committee's sub-publicity committee, as some of the industry's priorities for 2023. These initiatives have had a continued impact on the industry's growth and volume of written business.
She added that consumers may now contact their insurance providers on a wider range of platforms than in the past and promised to create more of these channels in order to boost insurance penetration and industry business.
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.
Speaking further about the industry's growth initiatives, Ebelechukwu Nwachukwu stated that the Insurers Committee had reviewed the 10-year insurance development road map, which stressed the importance of ongoing enhancements to risk-based supervision for the expansion of the insurance market and the application of risk-based pricing.
The committee's transformation roadmap, according to her, outlines recommendations for improved market conduct, deeper talent pools within the insurance industry, insurer partnerships with telecoms and non-insurance channels, and raised awareness.
She alleges that NAICOM has ordered the Nigerian Insurers Association (NIA) to publicize information about unresolved claims from insurance companies in well-known periodicals.
She states that the goal of this program is to increase policyholder interest in and confidence in submitting claims for more mature risks.
The publication must be completed by the NIA in two weeks, and there will be a three-month observation period during which any improvements must be evaluated. According to Salami, regulatory action may be taken if progress is not made within three months.
He adds that records from the insurance companies indicate that some of these unpaid claims are not because the businesses are unwilling to pay, but rather because the policyholders have not produced the necessary paperwork to complete the procedure. Salami added, "And for that reason, we received this instruction from the insurance committee stating that it needs to be completed."
Post a Comment