FOLLOWING the failure of public sector group life business segment in their income portfolio, insurance companies may have created a bigger income stream in their group life policy in the private sector.
Industry players told Financial Vanguard that despite the Federal Government’s indifference towards insurance, there is a gradual reawakening on the importance of insurance on the part of the private sector. Although insurance operators initially protested the move, demanding that NAICOM should give operators some time to sensitize the public on the new rates, NAICOM insisted on immediate implementation.
Cornerstone Insurance group life business jumped by 91.7 percent to N2.3 billion against N1.2 billion while GPW climbed by 8.5 percent to N7.7 billion against N7.1 billion. Speaking on the development recently, Chairman of Cornerstone Insurance, Mr. Segun Adebanji said: “Our entire life insurance portfolio recorded an impressive growth and this growth was driven by regulatory changes to group life insurance pricing limits.”
He added: “Banks and insurance companies are guilty of flaunting laws sometimes. However, the banks flaunt laws to increase their portfolio, but in our case, we flaunt it to decrease our portfolio. The two are offences but one commits offence to enhance revenue, the other commits offence to reduce revenue and you start to wonder, ‘does it make any sense?’”