Insurance

Insurers generate just N1.50bn premium from e-channels

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Chuks Udo Okonta

In spite the huge funds deployed by insurance companies on Information Communication Technology (ICT) to boost their premium generation, only N1.5 billion was generated through e-channels in 2018, Inspenonline can report.

Data obtained from the Nigerian Insurers Association (NIA), Underwriters got N1.50 billion from e-channels, which was 0.36 per cent of the N413.85 billion gross premium income recorded in 2018.

The underwriters got N220.89 billion from insurance brokers; insurance agents generated N107.83 billion, which was 26.05 per cent; direct sales brought in N29.01 billion, 7.01 per cent, bancassurance yielded N30.37 billion, 7.34 per cent and N24.25 billion, 5.86 per cent, from other distribution channels.

According to the Nigerian Communications Commission (NCC) there are over 122 million Internet users in Nigeria with 33.13 per cent Broadband penetration in the country.

The NCC said the figure is projected to grow to 187.8 million internet users in 2023 while internet penetration is expected to hit 84.5 percent.

Observers are of the belief that this provides huge opportunities for insurers to sell their products.

The National Bureau of Statistics (NBS) said E-payment channels in Nigeria for the first half of 2018 was N65.3 trillion, compared to N49.4 trillion in the same period in 2017.

NBS noted that mobile payment transactions for the first half of 2018 was N739.6 billion compared to N555.8 billion and N612.7 billion in the first half of 2017 and 2016 respectively.

It maintained that POS transactions topped N1 trillion for the first half of the year compared to N610 billion and N676.7 billion in the same period in 2017 and 2016 respectively. Internet Web-enabled transactions came in at about N113.9 billion for the first half of 2018 compared to N83 billion and 106.2 billion in the same period in 2017 and 2016 respectively.

The Controller, Information Technology, Research & Statistics, NIA, Mrs Bola Omole, said there is need for insurance companies to embark on awareness creation, adding that the low premium from e-channels may be as a result of the belief some people hold about electronic transactions, which do make them buy products directly from the insurance firms.

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