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Chuks Udo Okonta
In spite the multi-billion naira spent on deployment of technology by insurance companies to drive sales of policies, only 3.2 per cent – N32 billion of N1 trillion revenue was attained, Inspenonline can report.
Managing Director Peerless Management & Solutions Limited and former Director, National Insurance Commission (NAICOM) Agboola Pius, who said this in a paper entitled: ‘Enhancing Insurance Penetration In Nigeria: The Pivotal Role of insurance Brokers’ delivered at the Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB-LAC) 2024 Midyear Workshop in Lagos, noted that buck of insurance premium is generated by brokers.
According to him, insurance brokers generate 68.32 per cent of the insurance industry income, agents contribute 21.65 per cent and bancassurance six per cent.
He noted that without insurance brokers, the underwriting sector would be in trouble, adding that brokers play key role in insurance distribution.
He decried the absence of insurance brokers in 16 states – Nasarawa; Niger; Adamawa; Borno; Gombe; Taraba; Yobe; Jigawa; Katsina; Kebbi; Sokoto; Zamfara; Ebonyi; Bayelsa; Cross River and Ekiti.
He called for collaborations; partnerships; operation cost reduction; harmonizing experiences; leverage on artificial intelligence amongst other things in the quest to deepen insurance penetration.
The Chairman Nigerian Insurers Association (NIA) Kunle Ahmed, speaking at the. association’s Annual General Meeting (AGM) said the Nigerian insurance industry in 2023 saw significant developments and faced various challenge, noting that the insurance sector in Nigeria has a large number of competitors, but the limited financial capacity of some has made it difficult to deepen market penetration.
“The lingering effects of the COVID-19 pandemic and the reduction in oil output prompted policymakers to consider steps towards fostering stronger insurance providers,” he said.
Ahmed stated that the gross written premium of the Nigerian insurance market was N736.2 billion in 2022, and the market achieved over 35% growth recording over N1 trillion in 2023.
He submitted that the insurance market recorded total assets of N2.67 trillion and capitalisation of N 851 billion in 2023, adding that the net claims posted by the industry were N669.4 billion, with the non-life segment contributing N329 billion, while the life segment recorded N340.4 billion.
He maintained that despite this achievement, insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty.
