Insurance

Nigerians spend N47.67bn to insure their lives

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Chuks Udo Okonta

About N47.67 billion was spent in 2018 on life insurance cover by people living in Nigeria, Inspenonline has learnt.

Data obtained from the Nigerian Insurers Association (NIA) published Nigeria Insurance Digest 2018 revealed that N47.347 billion was spent on buying group life insurance covers and N318 million was spent on whole life insurance policies.

According to the NIA, people living in Lagos State, spent N34.78 billion on group life, while N267 million was spent on whole life. Abuja dwellers spent N8.08 billion on group life and N11.85 million on whole life.

The association said people in Rivets State, spent N1.99 billion on group life and N17.22 on whole life while people living in Zafara spend N1.85 billion on group life and nothing on whole life.

The publication also showed that N29.63 billion was paid as claims on group life while N155 million on whole life in the year.

To ensure its workers are secured, the Federal Government renewed its workers Group Life Insurance Policy for 2020 with part payment of about N6 billion to life underwriters.

It was learnt that the money was paid to about five different lead underwriters that led the insurance businesses of different ministries.

On the state level, the National Pension Commission (PenCom) said only the Federal Capital Territory (FCT) Abuja and Kaduna State Government are complying with group life rules.

Operators in the private sector are yearly compelled to provide group life policies for their workers by ensuring they possess compliance certificate issued by PenCom, which is a necessity for biding government contracts.

Industry watchers are optimistic that more Nigerians will buy life insurance policies due to the COVID-19 pandemic.

The Nigerian Insurance Industry in support of the federal government fight agains COVID-19, has paid N112,500,000 premium for the provision of life insurance cover for 5,000 frontline health workers

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