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Insurance Industry Premium Hits N630bn



About 56 registered life and non-life insurance companies in the country posted a gross premium income of N630billion in their unaudited 2021 financial year, LEADERSHIP findings reveal.

This was a major growth when compared to N508 billion gross premium written (GPW) the industry posted in the 2020 financial year, translating to N122billion increase within the period under review. It however recorded N471.8 billion premium income in 2019.

In the last three years, however, from 2019 to 2021 financial years, the industry recorded a gross premium written of N1.6trillion.

The industry has an ambitious target of meeting N1 trillion annual premium income in the next few years, and experts believe this is a step forward in this regard.

This, according to market analysts, is unique taking into considering the tough operating environment that affected insurance renewals of some firms last year even as some companies who were previously insuring, closed down operations as they could not cope with the challenging economic atmosphere in the country.

Similarly, reliable sources in the industry revealed that, about 45 per cent of the income, equally went into claims payment, a development that further reinforced the pledge of insurers to continue to pay genuine claims.

An Agusto & Co.’s ‘2022 Insurance Industry Report’ sighted by LEADERSHIP at the weekend, said, in 2021, the sector had to grapple with the negative residues of the Covid-19 pandemic and the #EndSARS protests. In particular, the report said, higher claims were paid to policyholders who suffered losses from lootings and destruction that marred the #EndSARS protests in October 2020.

Nevertheless, the report stated that, the industry remains resilient with various initiatives by insurers to improve retail product penetration and boost gross premium income(GPI).

“Some of these initiatives include increased adoption of bancassurance to reduce the dependence on brokers and partnerships with Fintechs. We believe that enhanced bancassurance would allow insurance operators to leverage the more structured data and client base of the banking industry to deepen their reach in the retail market,” it pointed out.

Furthermore, it stressed that, the sharp switch to virtual channels, one of the many rapid changes witnessed during the pandemic induced lockdowns in 2020 was sustained in 2021 with individuals and corporates maintaining a significant online presence, expecting this trend to continue.

“With more people online, insurance companies can create targeted marketing campaigns aimed at re-orientating Nigerians to embrace insurance products,” it pointed out.

Speaking on this development earlier, the chairman,  Nigerian Insurers Association(NIA), Mr. Ganiyu Musa, said,  insurance industry paid over N224billion claims in 2020 while it paid higher in 2021 financial year.

Musa, who is also the group managing director of Cornerstone Insurance Plc, said: “in 2020 financial year, the Gross Premium Written stood at about N508billion while claims paid by member companies amounted to about N224billion which is 44% of the total industry premium.

“I am indeed happy to report that Insurance companies have paid over N11billion claims to insureds that suffered losses from the EndSars riots in 2020.”

He promised that his association will continue to emphasise the need for insurance companies to pay all genuine insurance claims and will not hesitate to sanction erring member companies.


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