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By OLADELE OGUNTIMEHIN
The National Insurance Commission (NAICOM) revealed that the total asset of 58 insurance companies as at 2018 stands at N1.3 trillion, stating that the delay of the statistic owes to late submission of the operators’ financials.
The Acting Commissioner, Sunday Thomas spoke Monday at the 2019 Insurance Consultative Forum of the Lagos Chamber of Commerce & Industry (LCCI) themed: Insurance Today & Future.
He said the companies recorded a total Gross Premium Income (GPI) of N421 billion and the industry has helped to grow the economy by paying a total of N160 billion claims to Nigerians in the period under review.
He noted that insurance penetration remains at less than one per cent, with density at $6.2 while claims ratio stands at 0.38 per cent.
He stressed that low penetration means there is room for geometric growth but there must be improved market conduct, service delivery, value creation as well as prompt and fair claims settlement, among others.
The implementation of the strategy is not only expected to increase GPI but transform Insurance into a significant contributor to Nigeria’s GDP.
Thomas pointed out that insurance does not operate in a vacuum, it is affected by emerging trends and environmental changes.
He said: “Understanding the interplay among social, economic and environmental crisis is key to understanding their impacts on the insurance industry and is therefore the key to developing innovative response that will promote the long term steady growth of the industry.”
He said emerging trends and environmental changes such as telematic, Artificial Intelligence (AI), Internet of Things (IoT), autonomuos cars, among others are disruptive for the industry, as they change the subject matter of insurance and alter how risks are evaluated and premiums derived.
BADEJO ADEMUYIWA has 23 years experience as a Finance Writer, specialising in Insurance and Investigative Reporting.
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