Insurers eye N149.30bn premium from motor insurance in 2023

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Chuks Udo Okonta

The insurance industry is expecting a gross premium of N148.30 billion from motor insurance this year, as against N56.76 billion recorded in 2022, Inspenonline can report.

The Director-General Nigerian Insurers Association (NIA) Mrs. Yetunde Ilori, disclosed this in a paper entitled: ‘Market Compliance On Tariff Rated Products and The Financial Performance Of Companies’ at the the 2023 Chartered Insurance Institute of Nigeria – Offices Representatives Committee (CIIN-ORC) Workshop in Lagos, adding that the operators have hinged their expectations on anticipated 3.68 million of insured vehicles as captured on the Nigerian insurance Industry Database (NIID).

She noted that the breakdown of the 3.68 million insured vehicles would be 3.25 million under third party; 407,871 comprehensive and 16,212 third party fire and theft, stressing that N48.80 billion premium is expected from third party; N93.81 billion from comprehensive and N6.69 billion from third party fire and theft.

Mrs. Ilori expressed misgivings over the huge loss the industry had recorded over the years due to fake motor insurance policies, stating that in year 2020 the industry insured 2.78 million vehicles as against 12 million in the country, losing N48.76 billion.

Continuing she submitted that the industry in year 2021 insured 3.36 million vehicles, losing N57.04 billion and in 2022, 3.68 million vehicles were insured and the industry loss N60.01 billion.

She posited that the industry is partnering Lagos State Government to implement e-insurance to drive sales of third motor insurance through the Motor Vehicle Administration Agency (MVAA) platform of the state, adding that this would eradicate fake insurance.

The CEO of NIA stated that e-insurance initiative would be extended to other states in the federation.

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