Insurance coverage sector premium up 10% to N560 billion

Nigerian insurance coverage trade generated N560 billion from firms booked in 2021 monetary interval.

The outgoing President of the Nigerian Affiliation of Insurers, Mr. Ganiyu Musa, introduced this on the th Annual Normal Assembly in Lagos on Thursday.

Throughout the assembly, the brand new executives have been introduced and the Normal Supervisor/Chief Govt Officer, Previous Mutual Nigeria Life Insurance coverage Firm Restricted, Mr. Olusegun Omosehin, turned the brand new Chairman of NIA.

He stated: “Regardless of these challenges, the insurance coverage trade continues to satisfy its authorized position of monetary intermediation and enterprise restoration.

“The turnover quantity of the affiliated firms grew from N10bn in 2020 to roughly N560 billion in 2021, representing a rise of %.”

Musa stated the affiliation, together with the Nationwide Insurance coverage Fee, had taken a number of initiatives to deepen insurance coverage penetration.

The initiatives comparable to monetary inclusion, microinsurance, the affiliation’s NIIP initiative and different strategic market growth initiatives are anticipated to extend public acceptance of insurance coverage, he stated.

Musa stated the insurance coverage sector recapitalization initiated in Might by the Nationwide Insurance coverage Fee 2003 remained unresolved as a consequence of lawsuits filed by some concerned events.

He stated that the affiliation was not a celebration to the lawsuit and that it anticipated the circumstances to be settled quickly.

“We’re additionally involved in regards to the uncertainty attributable to the delays, particularly amongst our important stakeholders, and we name on litigants to sheath their swords in order that what the problems of dispute could be resolved via constructive dedication to a swift finish to the case within the curiosity of the assuring public and all stakeholders,” he stated.

He famous that the definition of capital for recapitalization was one of many foremost issues confronted by member firms.

The definition of capital as contained within the Insurance coverage Act 2003 and its interpretation by the fee lagged far behind insurance coverage and regulatory greatest practices of the monetary sector and would hurt member firms, he stated.

He stated: “The affiliation then engaged the committee to seek out a suitable definition of capital according to what’s true in different jurisdictions. Subsequently, throughout the varied periods, displays got by NIA, NAICOM and KPMG and the agreed place was introduced to the Federal Ministry of Finance, Funds and Nationwide Planning for inclusion within the Financing Act.

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

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