58 insurance firms generate N2.1trn gross premium

Despite low insurance adoption in the country, the 58 underwriting companies in insurance sector have generated a whopping N2.1 trillion as gross premium income from underwriting risks in the last seven years, LEADERSHIP checks have revealed.

The premium income of the industry had steadily grown over time, showing increasing insurance appetite of Nigerians, even though penetration is still abysmally low, compared to the country’s huge population.

LEADERSHIP investigations further revealed that from the N2.1 trillion gross premium generated, the insurers paid about N549billion claims to Nigerians, leaving the industry with an actual profit of N1.4trillion between 2010 and March, 2017.

Between 2010 and 2014, the industry recorded a gross premium income of N1.22 trillion, made N358 billion premium income in 2015, recorded an estimated N390 billion total premium in 2016 and was able to pull an estimated N140 billion gross premium in the 1st quarter of 2017, making N2.1 trillion gross premium income generated in the last seven years.

As more Nigerians become aware of the need to make claims on insured assets, the compensation demand has equally risen in the last seven years, while industry observers believe the figure this year could double last year’s, as the value of claims soars as a result of naira devaluation.

Leadership, April 3, 2017

 

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