Insurers lose N165.83bn on motor business in 3 years

NIA Chairman Segun Omosehin

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Chuks Udo Okonta

The insurance industry had between year 2020 to 2022 loss N165.83 billion on motor insurance business, Inspenonline can report.

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.

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