The total asset of 58 insurance companies as at 2018 stands at N1.3 trillion, Acting Commissioner, National Insurance Commission (NAICOM), Mr Olorundare Sunday Thomas has said.
This is coming after some years of non-availability of the true financial position of the insurance industry. This is because problems relating to insurance company’s inability to submit their financials as at when due.
He spoke on Monday at the 2019 Insurance Consultative Forum of the Lagos Chamber of Commerce & Industry with theme: Insurance Today & Future.
He said the companies recorded a total Gross Premium Income (GPI) of N421 billion.
He also said the industry has helped grow the economy by paying a total of N160 billion claims to Nigerian in the period under review.
He however noted that insurance penetration rate remains at less than one per cent, with density at $6.2 while claims ratio stands at 0.38 per cent.
He stressed that low penetration means there is room for geometric growth but there must be improved market conduct, service delivery, value creation as well as prompt and fair claims settlement, among others.
The implementation of the strategy is not only expected to increase GPI but transform Insurance into a significant contributor to Nigeria’s GDP.
Thomas pointed out that insurance does not operate in a vacuum, it is affected by emerging trends and environmental changes.
He said: “Understanding the interplay among social, economic and environmental crisis is key to understanding their impacts on the insurance industry and is therefore the key to developing innovative response that will promote the long term steady growth of the industry.”
He said emerging trends and environmental changes such as telematic, Artificial Intelligence (AI), Internet of Things (IoT), autonomuos cars, among others are disruptive for the industry, as they change the subject matter of insurance and alter how risks are evaluated and premiums derived.
Speaking on NAICOM’s strategy and initiatives, he said the commission is focused on the realisation of some desired future of insurance in Nigeria.
“We want to achieve a safe, sound and stable industry; developed and innovative Insurance market – technical capacity; disciplined and customer-centric market (protection of policyholders); dependable/trusted insurance market – integrity and claims management; technology-driven Industry – FinTech, InsurTech, SupTech, RegTech; and Effective Legal & Regulatory Framework, he added.