THURSDAY, 01 JULY 2010 01:19 MODESTUS ANAESORONYE
The nation’s insurance industry has recorded a premium income of N200.6 billion for the financial year ended December 31, 2009, as against N150.3 billion it posted the same period in 2008, indicating a 33.5 percent growth. The growth, according to analysts, may have been as a result of market expansion and increased business resulting from the industry’s increased capacity since after its recapitalisation in 2007.
After the recapitalisation exercise, the industry’s capital base grew from less than N30 billion in 2005 to about N200 billion in 2007, after life and non-life business companies increased their capitals to N2 billion and N3 billion, respectively, as requested by the regulator.From the total premium figure, non-life business produced N161.4 billion while life business contributed 39.15 billion.
The result which was announced at the 39th annual general meeting (AGM) of the Nigerian Insurers Association (NIA) trade body held in Lagos shows that motor business contributed the highest premium amounting to N41.67 billion as against N32.04 billion the previous year. This was followed by general accident insurance which contributed N30.98 billion followed by oil and gas business which generated N25.53 billion. Marine and aviation came fourth in terms of premium generation,contributing N18.74 billion while fire business followed, contributing N17.3 billion.
Wole Oshin, chairman of the association who disclosed the result said it is expected to be surpassed in 2010 as companies continue to evolve dynamic strategies to expand the frontiers of their businesses.Oshin believes that once the critical issues of insurance awareness, product development and distribution are addressed coupled with the implementation of the National Insurance Commission’s (NAICOM) Market Development and Restructuring Initiative (MDRI) which emphasises the enforcement of compulsory insurances, the industry will take its well deserved position in the financial services sector of the economy.
The chairman, whose two-year tenure ended at this meeting, said the industry’s market agreement launched during his tenure represent the modest efforts by his administration to enthrone professionalism, sound ethics and best practices in the conduct of the insurance business.
He said the idea behind the market agreement is novel and noble and it’s expected that the strict compliance will boost the industry premium, solvency and further develop the market. Oshin, therefore, appealed to members to strictly adhere to the market agreement so that the industry can be made better and more beneficial to the policy holder and the society.