Experts identify factors militating against achievement of N1trn premium target
Insurance experts have identified some of the challenges militating against the realization of the N1 trillion premium target set by the industry many years ago.
Poised to drive growth in the industry and take it to the next level, the Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Mr Olorundare Sunday Thomas, had in an interview with NAIPCO Trumpet, after his appointment as NAICOM boss, expressed displeasure on the performance of insurance industry in Nigeria especially the level of its premium income.
According to him, “You will recollect that in the last three years or so, we have been hovering around N350 billion to N400 billion premium. I believe that in the next two years we must make a remarkable change. If we cannot hit a trillion in the next two years, we should reach half a trillion. We must hit a 50 per cent increase over what it is now. In which case, we should be talking of N700 billion instead of still dancing around N400 billion which is not progress. That is not my vision of a trillion naira in two years.”
Meanwhile, the Chairman, Nigerian Insurers Association (NIA) and the Managing Director/Chief Executive Officer, Cornerstone Insurance Plc, Mr Ganiyu Musa also in an interview with NAIPCO Trumpet listed some factors militating against the achievement of the N1 trillion premium target soon.
Some of the factors, according to him, include the COVID-19 pandemic, failure for Nigerian populace to adopt insurance, obsoleteness of the Insurance Act and the failure of the government to enforce compulsory insurance and failure by the Federal Government and some state governments to undertake compulsory insurance covers such as Group Life Insurance for their workers, builders’ liability insurance for their buildings and public utilities etc.
He said based on the forgoing alone, achieving the set target became highly doubtful.
“With the presence of the pandemic this year, which has slowed down the economy, coupled with the already existing challenges, it has become more doubtful that the target would be achieved soon. However, if the economy gets revived, quickly and the state and federal governments take up their responsibilities of implementing, domesticating and enforcing compulsory covers, then the goal of meeting the set target may be achieved in the near future,” NIA boss stated.
