Insurance sector records N2.83tn investments in three years
The insurance sector recorded a total investment of N2.83tn between the 2017 and 2019 financial period.
Statistics obtained from the National Insurance Commission on Tuesday showed that the total investment rose from N700.79bn and N1.007tn in 2017 and 2018 respectively to N1.12tn in the 2019 financial period.
According to the figures, the insurance sector had an estimated N490.99bn gross premium in 2019, while the total claims and premium retention stood at N330.36bn and N376.07bn respectively.
The acting Commissioner for Insurance, Mr Sunday Thomas, said the sector was looking at a more positive outlook in 2020 and beyond.
While speaking on the value of claims paid by the sector, he said, “There is no denying the fact that there are indeed some cases of delays in the payment of claims by some operators. The commission is however addressing such cases as soon as they are brought to our notice.
“It is for this reason that the commission has strengthened its Complaint Bureau Unit in order to effectively address consumers’ complaints within the shortest possible time.”
He said that the commission had also, as a matter of deliberate policy, adjusted its strategy to focus more on developmental issues than compliance issues going forward in the overall interest of all stakeholders.
Thomas said the commission had in 2019 initiated the process to recapitalise the insurance industry in order to upscale its financial standing to meet up with current economic realities and avoid imminent systemic collapse and solvency crisis in the insurance sector.
He noted that this would ensure that the industry became more robust in its technical competence and financial base, build confidence, trust and enhance market value.
“It is further aimed at repositioning the sector for self-actualisation in terms of growth and development. The process is expected to be concluded by 31st December, 2020.”
In 2009, he said, the commission launched the Market Development and Restructuring Initiative project aimed at a comprehensive pursuit of development of the industry as well as ensuring full compliance with extant laws in respect of compulsory insurances.
He noted that the first phase of the project was successfully carried out in all the six geo-political zones in the country.
Thomas said the second phase of the MDRI project would soon be unveiled and it would mark out clear targets and tasks for all stakeholders in the industry.