Insurers make N284b profit from N508 premium
By Jeph Ajobaju, Chief Copy Editor
Insurers made N284 billion gross profit in 2021 after generating N508 billion gross premium and paying N224 billion claims to policy holders.
Nigerian Insurers Association (NIA) Chairman Ganiyu Musa disclosed in Lagos that the N224 billion claims was 44 per cent of total premium.
Musa said the NIA will continue to complement the efforts of the National Insurance Commission (NAICOM) in the campaign to domesticate compulsory insurance in states.
“It is our expectation that laws on compulsory insurance can be domesticated in other states just as Lagos State has done.
“Beyond the efforts of the Commission, NIA has also upscaled its market development initiatives through strategic engagements with various states,” he stressed.
The initiatives include a joint effort with the Lagos government to enforce and validate real compulsory third-party motor insurance.
The policy is required by legislation in Lagos, using VIS’s Automatic Number Plate Recognition (ANPR) equipment and Nigerian Insurance Industry Database (NIID) Verification Platform.
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NIA plans going forward
Musa disclosed that the NIA is holding talks with the Lagos State Building Control Agency (LASBCA) on using NIID Verification Platform to enforce, verify, and validate real required Buildings Under Construction Insurance.
The NIA is also working with the Lagos State Safety Commission, Nigeria Council of Registered Insurance Brokers, and Courtevill on the implementation, enforcement, and validation of compulsory Occupiers Liability Insurance.
NIID Verification Platform makes the policy necessary by law for all public buildings.
“The exercise will be launched on April 28 and enforcement will commence in May, so we are building capacity of its members to enhance compliance in line with the emerging regulations,” Musa said, reported by Nairametrics.
Discussion is ongoing between the NIA, NAICOM, Nigerian Shippers Council, Project IT Vendor-BrandOne, and other maritime stakeholders on providing cover for containers.
“The stakeholders also include Shippers/Importers, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies.
“This will be a risk management substitute for container deposits being made by the importer to the shipping companies, thereby eliminating capital flight from the country.
He added that the NIA with the help of its team of actuaries is discussing cover for Export Credit Guarantee Insurance and Political Risks for banks and exporters.
