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Chuks Udo Okonta
Insurance brokers and agents were paid N38.89 billion as commissions by underwriters in 2017, Inspenonline can report.
Data obtained from the Nigerian Insurers Association (NIA) revealed that the insurance intermediaries received N24.70 billion from general business operators and N14.18 billion from life operators.
According to the NIA, companies with large commissions are: Leadway Assurance Limited, which paid about N3.98 billion commission out of gross premium income of N84.19 billion; FBNInsurance Limited, paid N3.09 billion out of N19.58 gross premium income; AIICO Insurance paid N2.57 billion; NEM Insurance, N2.57 billion and Axa Mansard Insurance, paid N2.22 billion.
Others are, Custodian & Allied Insurance, N1.78 billion; WAPIC Insurance, N1.48 billion and Zenith Insurance Company Limited, N1.18 billion.
The volume of business written by insurance companies grew from N315.96 billion in 2016 to an estimated N363 billion in 2017, but the amount generated by brokers could not be ascertained due to paucity of data.
On what brokers are doing to showcase the income generated from their sector, the President of the Nigerian Council of Registered Insurance Brokers (NCRIB) Shola Tinubu, said the body is working assiduously to tackle the challenge of paucity of data as to the income generated by brokers for underwriting firms.
“We have rough data for commission and premium, but we do not have data for gross premium generated by the broking sector. It is a challenge we have to rise up to going forward, because we need to be able to bring what we generate to the table,” he said.
Insurance brokers have over the claimed to control about 80 per cent of the industry’s business, a claim which observers could only be proven with reliable data.