With the nation’s insurance industry gradually inching towards the realization of its desire to mobilize insurance premiums to the trillion naira level, the National Insurance Commission (NAICOM) is hopeful that the full implementation of its Market Development and Restructuring Initiative (MDRI) project is capable of stimulate higher growth among insurance companies.
The MDRI aims at a comprehensive pursuit of development of the industry as well as ensuring full compliance with extant laws in respect of compulsory insurances.
The Commissioner for Insurance and Chief Executive Officer of MAICOM Mr Sunday Thomas while explaining the essence of the project noted that the first phase of the project was successfully carried out in all the six geo-political zones in the country.
Thomas linked the project to the recent data from the Nigerian Insurers Association, NIA, which disclosed gross premium earning of N2.1 trillion by Nigerian Insurance firms between 2016 and 2020.
According to the report, life and non-life underwriters earned N316 billion, N363 billion and N413 billion in 2016, 2017 and 2018, respectively as well as premiums of N490 billion and N520 billion in 2019 and 2020 respectively.
The industry’s asset rose from N1.62 trillion in 2019 to N2.02 trillion in 2020, an indication that the industry maintained steady growth over the years.
As at the end of 2020, policies held by individual Nigerians stood at 1,034,383, while corporate and non-individual policies was put at 891,128. Total policies written stood at 1,925,511, while the insurance penetration during the period under review was 0.72 per cent.
Thomas, applauded the progress report saying that the sector is looking forward to a significant turnaround.
“The Commission is committed to vigorously pursuing the continued implementation of compulsory insurances to which collaboration and support from all stakeholders is key towards achieving the desired goal,” he said, adding that NAICOM is committed to ensuring adequate protection of policyholders as part of its core mandate.
“This effort has been taken in many fronts such as ensuring that genuine claims are promptly paid by insurers, ensuring financial soundness and viability of the insurers to protect investments, right pricing of insurance products, value for money, and use of technology for ease of transaction,” he said.
NAICOM, the Commissioner said will ensure that all its operations were done online and real time by digitalising its processes and encouraging the industry to imbibe same.
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