Chiamaka Ajeamo
Despite the macro economic challenges encountered by operators in the 2018 financial year, Nigeria’s insurance industry gross written total premium stood at N400 billion in 2018, representing a 10 per cent increase on N363 billion recorded in 2017.
This was disclosed by the Chairman, Nigeria Insurers Association (NIA), Tope Smart, at its 48th Annual General Meeting (AGM) recently held in Lagos. He said, “During the year under review, the volume of business written by member companies grew from N363 billion in 2017 to about N400 billion in 2018, representing an increase of about 10 per cent from 2017 figure.”
According to Smart, the sector contended with various challenges ranging from general economic problems from harsh operating environment to socio-political problems that confronted the country in the year under review.
“Power outages continue to be a major challenge to businesses; failure to abolish or amend CITA 2007 remains a huge burden for insurance companies; growing herdsmen/farmers’ clashes across the country, insurgency and armed banditry in the North, rising cases of kidnapping, armed robbery and other violent crimes as well the communal clashes in some states all combined to negatively affect the bottom line of many insurance companies. Despite the challenges, insurance companies continued to discharge their obligations to the insured in line with their mandate”, he noted.
He further stated that the association was working closely with the National Insurance Commission (NAICOM), to promote the business of insurance and increase its contribution to national Gross Domestic Product (GDP).
Some of the initiatives according to him, include, the insurance industry rebranding project; regulation on micro insurance; collaboration on financial inclusion; bancassurance guidelines, among others, expected to impact positively on the business of insurance companies.