Insurance

Brokers generate N257.28bn gross premium income for insurers

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Chuks Udo Okonta

Insurance brokers generated N257.28 billion out of the N490. 80 billion gross premium income recorded by underwriters in 2019, Inspenonline can report.

Data obtained from the Nigeria Insurance Digest, published by the Nigerian Insurers Association (NIA) revealed that brokers who are major players in the insurance distribution channel, controlled 52 per cent of the insurance market.

The NIA, stated in the digest that the brokers were followed by insurance agents, who generated N166.20 billion, which was 34 per cent of the cumulative gross premium recorded in the year.

Direct sales yielded N47.24 billion, 10 per cent; bancassurance channel provided N4.20 billion, 10 per cent; e-channel, N2.32 billion, 0 per cent and underwriters got N3.06 billion, three per cent from other channels.

According to an operator, the low contribution from e-channel, was mainly due to unethical practices, known as rate cutting.

The operator noted that the sale of policies especially motor insurance on digital platforms has been very difficult as the same policies are purchased at the open market below the regulated price.

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