How 4 insurers are enriching syndicates with ridiculous premium on motor policy in Abuja

Kindly leave a comment and share

Chuks Udo Okonta

At a time the National Insurance Commission (NAICOM) and Nigerian Insurers Association (NIA) are working hard to reposition the insurance industry, four underwriting firms are clogging the progress by selling motor insurance policies to syndicates at N3,000 as against the statutory N15,000 approved premium.

An Anuja based insurance agent told Inspenonline on the sideline of the just concluded 2023 National Insurance Commission organised by NAICOM, that the four insurance firms are presently selling their motor policies at bulk rate to individuals that are not insurance practitioners at N3,000, while the non actors sell to syndicates at the Abuja vehicle licensing office at N3,500 and the syndicates sell to the public at N15,000.

He expressed worry over the huge loss the industry is making as the erring insurance companies sell premium at ridiculous premium.

He said the rate of unethical practices in Abuja has gone so bad that it is now difficult for genuine insurance firms to sell their motor policies through registered agent.

He called on the leadership of NAICOM and NIA to beam searchlight on insurance practice in Abuja if they hope to achieve their set objectives.

According to the NIA the insurance industry had between year 2020 to 2022 loss N165.83 billion on motor insurance business.

The Director-General Nigerian Insurers Association (NIA) Mrs. Yetunde Ilori, disclosed this recently at an event in Lagos, adding that the industry loss N48.76 billion in 2020; N57.04 billion in 2021 and N60.01 billion in 2022.

She noted that insurers through their umbrella body the NIA is presently working hard to block the leakages with the help of technology.

Chairman of NIA Olusegun Omosehin, who also spoke on the loss, said the insurance industry is working assiduously to block premium leakages through deployments of electronic covers.

Omosehin noted that the industry is working with state governments to entrench electronic third party motor insurance policies.

He noted that the deployment of e-covers and other measures taken by the operators would shoot insurance gross premium to N1 trillion, which has been an age-long target for the industry.

He submitted that insurance companies are leveraging digital and technology innovation to increase insurance penetration and premium income

The industry, he said, has progressed a lot in the area of technological adoption, while believing that tech and digitalisation will steer the insurance industry to meet its expectations, even as he promised that operators will continue to partner tech companies in a collaboration that will yield positive result.

He stressed that the industry is leveraging technology on adoption of third party motor insurance and has partnered several states including Lagos State to enhance insurance adoption, especially, from motorists in the country.

According to him, “We, as insurance operators, believe technology and digital resolution will enhance insurance operations, deepen penetration and acceptance in the country. To this end, we have collaborated with some state governments, including Lagos State to enhance third party motor insurance adoption.”

He is optimistic that technology is a leveler, a platform that will give insurance industry the needed breakthrough and that insurance operators are open to its adoption.

Leave a Comment

Your email address will not be published.