Insurance coverage Trade’s Premium Rises 10% To N560bn

The sum of N560bn has been generated by the Nigerian insurance coverage trade from companies written within the 2021 monetary interval.

The outgoing Chairman of the Nigerian Insurers Affiliation, Ganiyu Musa, revealed this on Thursday throughout its 51st annual common assembly in Lagos.

The Managing Director/Chief Government Officer, Outdated Mutual Nigeria Life Insurance coverage Firm Restricted, Olusegun Omosehin in the course of the assembly emerged as the brand new chairman of NIA.

Musa mentioned, “However these challenges, the insurance coverage trade continues to carry out its statutory position of economic intermediation and enterprise restoration.

“The amount of enterprise written by member corporations grew from N508bn in 2020 to about N560bn in 2021, representing a rise of 10 per cent.”

Musa mentioned the affiliation, in collaboration with the Nationwide Insurance coverage Fee, had launched into numerous initiatives to deepen insurance coverage penetration.

He mentioned the initiatives similar to monetary inclusion, micro-insurance, the affiliation’s NIIP initiative and different strategic market improvement initiatives had been anticipated to extend insurance coverage uptake by the general public.

Musa mentioned the insurance coverage trade recapitalisation train, which was incepted by the Nationwide Insurance coverage Fee in Could 2019, remained unresolved because of the court docket circumstances initiated by some involved events.

He mentioned the affiliation was not a celebration to the lawsuit, and it was its expectation that the circumstances could be expeditiously allotted with.

He additional said, “We’re additionally involved concerning the uncertainty the delays have created, particularly amongst our important stakeholders, and we attraction to the litigants to sheathe their swords in order that regardless of the points in competition are might be resolved via constructive engagement for a swift finish to the matter within the curiosity of the insuring public and all stakeholders.”

He famous that the definition of capital for the aim of the recapitalisation train was one of many main points confronted by member corporations.

The definition of capital as encapsulated within the Insurance coverage Act 2003 and the fee’s interpretation of the identical had fallen far behind greatest observe in insurance coverage and monetary sector regulation and could be injurious to the member corporations, he mentioned.

He mentioned, “The affiliation subsequently engaged the fee on the necessity to discover a suitable definition of capital consistent with what obtains in different jurisdictions. Shows had been subsequently made by NIA, NAICOM, and KPMG on the numerous periods and the agreed place was offered to the Federal Ministry of Finance, Finances, and Nationwide Planning for inclusion within the Finance Act.

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