The Nigerian Insurers Association (NIA) said it is engaging the Federal Government and its agencies towards ensuring that data is provided and adequate premium paid on insurance of her assets.
Kunle Ahmed, newly elected chairman of the NIA made the disclosure at the Association’s Annual General Meeting held in Lagos.
Ahmed said, “We will continue our engagement with the representatives of Federal Ministry of Finance, Budget and National Planning, the Office of the Head of Service and the Accountant General’s Office on the issue of provision of appropriate data and payment of adequate premium on insurance of government assets.
“Several meetings have been held with a view to resolving the data and funding of the schemes.” He said while we are able to report some progress on obtaining data, we remain hopeful that all the areas of concern will be resolved as quickly as possible so that insurance companies can perform their statutory obligations in that regard.
Ahmed who is the chief executive officer of AXA Mansard Insurance Plc said the Association made spirited efforts to ensure the Consolidated Insurance Bill 2023 was signed into law during the last administration, but this was not achieved.
He however disclosed that concerted efforts are being made by the Association to ensure the new revised bill named – “Nigerian Insurance Reform Bill 2024 “currently on the floor of the Senate of the 10th National Assembly is passed to reposition our insurance industry and to enable us to operate in line with global best practice.
“I want to assure you that we will continue the engagement with the current Assembly to ensure that the new Nigerian Insurance Reform Bill 2024 is passed and signed into law.”
Giving the report on the performance of the industry in 2023, he said the insurance sector in the review year witnessed significant developments and faced various challenges.
“The insurance sector in Nigeria has a large number of competitors, but the limited financial capacity of some has made it difficult to deepen market penetration.”
In terms of performance, the gross written premium of the Nigerian insurance market rose by 35 percent from N736.2 billion in 2022 to over N1 trillion in 2023.
Total assets was N2.67 trillion and capitalization was N 851 billion in 2023, whereas net claims posted by the industry was N669.4 billion, with the non-life segment contributing N329 billion and the life segment N340.4 billion.
“Despite this achievement, insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty.”
Ahmed said the Association will continue to support, collaborate and work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services sector to promote the business of insurance through the development of innovative products especially for those financially excluded, and the enforcement of compulsory insurances.