Insurance market grows business volume by 15.55% to N490bn in 2019
Mr. Tope Smart, NIA Chairman
The Nigerian insurance industry has continued to perform its role of financial intermediation and business restoration in line with its mandate despite challenges occasioned by various economic uncertainties.
The volume of business written by the market grew from N413.8 billion in 2018 to about N490bn in 2019, representing an increase of 15.55% over 2018 figure.
Speaking at the 49th Annual General Meeting (Virtual) of the Nigerian Insurers Association, the Chairman, Mr Tope Smart said It is expected that the various initiatives embarked on by the Association in conjunction with other stakeholders such as financial inclusion, micro insurance, the insurance industry rebranding project, the Association’s USSD initiative and the Nigerian Insurance Industry Platform for sale of Third Party Motor Insurance coupled with other strategic efforts by the regulator will further deepen insurance penetration and encourage insurance uptake by the public.
He said during the past year, the Association in line with its mandate of promoting the interest and business of its members, engaged in several activities and initiatives including the industry’s response to COVID-19 pandemic.
The outbreak of Coronavirus pandemic which has become a global cause for concern, according Mr Smart, has posed a serious challenge to the Association and the entire Nigerian insurance industry.
Mr. Smart who is also the MD/CEO, NEM insurance, said the virus has not only disrupted businesses but also forced member companies to activate their business continuity strategies , adding that “we are happy that they have responded adequately to the challenges posed by the disease.”
NIA boss noted that remote working, deployment of technology, use of web conferencing technology for online meetings, maintenance of physical and social distancing in the work place and sale of insurance policies through online platforms have become part of the new normal created by COVID-19.
“As part of the industry contribution towards national response to the pandemic, the Association in collaboration with other arms of the industry provided life insurance cover for 5000 health workers and volunteers such as Doctors, Pharmacists, Nurses and other ancillary personnel in the frontline of the battle against COVID-19.
“The scale of benefits under the scheme are: Doctors – N3,000,000. Pharmacists and Nurses N2,000,000, Ancillary Personnel N1,000,000. Added to these, the Association also donated the sum of N500m (Five Hundred Million Naira) to the Federal Government as additional support in the fight against the pandemic.
“It is with a high sense of fulfillment that I report today, the Presidential recognition accorded the Industry by President Muhammadu Buhari during his Presidential Broadcast on Monday, 27th April 2020. This is the highest level of recognition by any government and as we savour in the feat so far achieved, let me also note that this is a call to duty and a challenge to do more.
“Riding on the momentum created, we need to upscale our engagements with government so as to build on the goodwill presented by the presidential recognition. Apart from the Association’s donation, individual member companies have also been supportive of the various interventions by Lagos State Government through provision of life insurance for health workersand donationofPersonalProtective Equipment (PPE) among others,” Mr. Smart added.
On recapitalization, he expressed confident that the Association’s continued engagements with the primary regulator, the National Insurance Commission (NAICOM) and other intermediate regulatory commission such as the Nigeria StockExchange(NSE); Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS) on the need to grant reliefs/ palliatives to members during the exercise.will have positive outcomes.
While commending members for their support and cooperation on new NIA House project, Mr Smart expressed happiness that the construction work on the new NIA Tower has reached advanced stage.
“We have had engagements with the main contractor and the sub-contractors and have been assured that the slight delay caused by the COVID-19 pandemic will not significantly affect the expected delivery date. I am happy to report that work is presently on going at the site.
Speaking on insurance industry rebranding project, he stated that the Association will continue to encourage and support activities aimed at increasing public confidence in the insurance industry.
While thanking member companies who contributed to the insurance Industry rebranding project under the auspices of Insurers Committee, he noted that the project has been brought to a successful closure and appreciated members of the Insurers’ Committee Sub Committee on Publicity for a job well done.
“We have taken note of the challenges faced during the campaign and the benefits thereon. The next phase of the programme will be robust and extensive. We also appreciate the Commission for the commitment and support for the exercise.
We are convinced that increased awareness creation will enhance the business of members. Member companies are encouraged to build on the momentum created by the project with a view to tapping into the massive business opportunities which the project will bring forth,” Mr Smart said.
He said the Association has scaled up her engagements with the critical stakeholders such as Federal Ministry of Finance, National Assembly, Central Bank of Nigeria, and other agencies of government whose activities impact on the business of insurance aimed at creating better understanding between them and the insurance industry so that the business can deliver more value through value enhancing policy frameworks.
Mr Smart said the Association and National Insurance Commission have continued to forge ahead in partnership with a view to developing the Nigerian insurance market., just as he commended the leadership of the Commission for the level of understanding and agreement reached on so many industry issues and expressed the hope that the momentum will be sustained as they strive to build a market that will be the pride and model of insurance practice in Africa.
He informed that NIA participated in the review of Draft Regulation on Retiree Annuity – Jointly issued by NAICOM and PENCOM.
