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Insurers earn N28.68bn from CI

By on May 27, 2014

The Commissioner for Insurance, Mr. Fola Daniel, said that the insurance industry earned N28.68bn from compulsory insurance products in 2012.

“Considerable progress was equally recorded in the volume of premium written under this class of insurance during the period. It rose sharply from N14.93bn in 2009 to N28.68bn in 2012, an increase of 92 per cent,” he said.

Daniel, in a presentation on the state of the industry, however, said the figures for 2013 were still being computed as all firms had not submitted their results.

He noted that the recent rebasing of the economy, making the Nigerian economy the largest in Africa and 26th largest in the world, had placed enormous responsibilities on the industry.

With the old based economy, he said that the sector barely contributed 0.7 per cent to the Gross Domestic Product.

“This, therefore, calls for more dynamic strategies to enable the sector to make meaningful contribution to the GDP,” Daniel said.

He said that the N1tn target had yet to be attained, but stressed that considerable progress was being made.

According to him, there had been massive awareness about the compulsory insurance policy within and outside the industry.

He said that this was evident in the number of policies written by companies under this class of insurance between 2009 and 2012, which he said rose by 111 per cent sharply from 72,180 to 15,218.

The commissioner said that it was encouraging that the underwriting companies had risen to their responsibility of claims settlement under the compulsory insurance scheme.

He described as impressive the rise in the volume of claims paid during the period.

Daniel said that the commission would consolidate on the gains made so far and ensure proper implementation of the compulsory insurance products to be able to enhance the industry contribution to the GDP.

An emerging fact, he said, was the interest currently being shown by various governments.

He disclosed that a group of underwriters had come together to enforce the motor vehicle third party liability insurance in Imo State, in collaboration with the state government, adding that the scheme was working well.

Another group of 19 underwriters, he said, was enforcing the occupiers’ liability insurance in Enugu State, in collaboration with the state government and added that the commission was working to get more states to embrace these models.

Daniel said that the commission remained committed to providing purposeful leadership to ensure sanity, good ethical practices, development and growth in the industry.

“The economic growth which is central to the government cardinal agenda will be enabled faster and in a sustainable manner, if insurance is developed as a driver of economic emancipation,” Daniel said.

 

 

[Punch]