REPOSITIONING THE INSURANCE INDUSTRY – THISDAYLIVE

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The relevant authorities should work harder to enhance insurance penetration in the country Despite recent reports that insurance claims in the country rallied to N1.5 trillion in six years, Nigeria is grossly under-insured. Successive reports by local

The relevant authorities should work harder to enhance insurance penetration in the country

The Minister of Finance, Budget and National Planning, Zainab Ahmed recently underscored this when she urged insurance operators in West Africa to reposition the industry for global competitiveness. Considering Nigeria’s position as the largest economy in the sub-region and the entire continent, the minister’s call has become more compelling for both the government, players, regulators and indeed every stakeholder to rise to the occasion and take the insurance industry to its pride of place.

Many factors have been adduced for the rather poor growth of the Nigerian insurance industry, including low penetration of insurance and the attendant sluggish growth in premium and profitability. Similarly, the density of the Nigerian insurance sector is currently at $6.2 and lags behind its African counterparts: South Africa ; Egypt ; Kenya and Angola . The asset base of the Nigerian insurance industry was reported to stand at N1.3 trillion as at 31st December 2018, indicating a compounded annual growth rate of 17 per cent over the last three years while Gross Premium Income generated was estimated at N448.6 billion, reflecting a 12 per cent growth year-on-year.

 

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