Insurance Sector Records 73.3% Market Retention in Q1

In spite of Macroeconomic challenges, Nigerian insurance industry recorded commendable performance in various segments of its operations during the first quarter of 2022.

Speaking at the Second edition of the Chartered Insurance Institute of Nigeria (CIIN) 2022 Business Outlook held recently in Lagos, the Deputy Commissioner for Insurance (Technical), National Insurance Commission (NAICOM), Sabiu Abubakar said the industry held a commendable market average retention of 73.3 per cent in the first quarter of 2022.

He said in spite macroeconomic challenges the industry recorded a year-on-year growth rate of about 6.2 per cent at the end of March, 2022, adding that the market size also grew at 15 per cent in the same period, which, according to him, was one of the fastest sectoral assets expansion in Nigeria.

Abubakar maintained that NAICOM has strengthened its regulatory oversight and implored operators to settle genuine claims within a reasonable time and discharge their obligations.

He said despite the above improvement indices, the insurance penetration in Nigeria still remains low at 0.5% (computed as Gross Premium Income as a percentage of Gross Domestic Product) which he said is the lowest in Africa

To deepen penetration, according to Abubakar, the Commission has embarked in a number of initiatives with a view to stimulating growth in the country.

Some of the initiatives embarked upon by the Commission, he said include Market Development Restructuring Initiative (MDRI) /Compulsory Insurance; Collaboration with State Government; Compulsory Insurance Task Force; Financial Inclusion and Microinsurance.

Others are Takaful Insurance; Banccassurance; Insurance of Government Asset Guideline; Regulatory Innovations; Web Aggregator Guideline; Sandbox Guideline and Local Content Regulation.

Abubakar said that insurance regulation and supervision are always the bedrock of national economic development, stressing that he believed NAICOM’s reforms and regulatory initiatives will positively impact the insurance industry if achieved and that the Industry will witness tremendous development and growth.

He implored insurance practitioners to remain complaints and support the commission’s efforts in developing the sector.