The Nigerian Insurers Association (NIA) has said that insurance industry in the country recorded a significant surge in premium volume, reaching an impressive height of N1 trillion in 2023.
The NIA mentioned this tremendous growth during its 53rd Annual General Meeting (AGM) held in Lagos.
The figure shows a substantial 35 percent increase compared to the N736.2 billion gross written premium recorded in 2022.
Meanwhile, the NIA during the AGM elected the Chief Executive Officer AXA Mansard Insurance Plc Kunle Ahmed as its 26th President.
Ahmed said that Nigerian insurance industry in 2023 witnessed significant developments and faced various challenges but was able to record total assets of N2.67 trillion, and capitalisation of N851 billion in 2023.
He noted that net claims posted by the industry stood at N669.4 billion with the non- life market contributing N329 billion, while life industry recorded a total of N340.4 billion.
According to him, despite the impressive results, insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty.
He stated that the NIA will continue to support, collaborate and work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services sector to promote the business of insurance.
He said this can be done through the development of innovative products especially for those financially excluded, enforcement of compulsory insurances towards the growth and development of our industry.
Also, Ahmed noted that despite the increasing difficulty in coping with adequate premium payment in the largely dollar-based energy insurance market, the energy and allied pool of Nigeria continued to adjust its marketing and other strategies to achieve growth.
“This combined with the achievement ofreasonable profitability in the year, the pool has further improved Nigeria’s local content potential in energy insurance both in terms ofcapacity and retention,” Ahmed explained.
However, he urged the technical management board to continue to build on the strong and firm foundation in increasing capacity and retention, looked forward to welcoming new members that are yet to subscribe to the pool.
He added, ”There is the need for full participation by all companies in general insurance business to enable our industry achieve reduction in premium flight in oil and gas underwriting.”
Ahmed in his acceptance speech craved support from all stakeholders in the insurance industry to enable him succeed.
He appreciated past Chairmen of the NIA for laying the foundation upon which the association is standing, and extended appreciation to his colleagues in the Governing Council, Chief Executive Officers of member companies, the Director General, Management and Staff of the Association.
He said, “I also seek your invaluable support as I pledge my total commitment to the ideals of the Association so that our Association will continue to remain a strong pillar of support to her members.”
The new NIA Chairman also used the occasion to inform the public of the appointment of the association’s new Director-General/CEO Mrs. Bola Odukale, who he said has since resumed on May 2, 2024 to ensure seamless transition.
He sought the support and collaboration from members to enable her take the association to the next another level, and appreciated the outgoing Director-General/CEOMrs. YetundeIlori for her meritorious service to the association.
He stated that while leading the charge at the NIA Secretariat, she performed creditably well, repositioning the association as a leading light in the financial services sector.
He stated, “It is no longer a secret that she will assume the presidency of the Chartered Insurance Institute in a bit, and we wish her a resounding success”.
