Nigerian Insurers Association NIA said the estimated volume of business underwritten by insurance sector in the financial year ended 31st December, 2013 stood at N285 billion.
This represents a 15 per cent increase when compared with N247.58 billion recorded by the sector in the comparable period of 2012. Addressing member companies at the association’s 43rd annual general meeting in Lagos, the outgoing Chairman, Mr. Remi Olowude, attributed the improvement recorded by the sector to the relative stability and sustained growth in the economy, the increasing insurance awareness and government’s patronage of insurance services.
Oluwude who was represented by the Deputy Chairman of the association, Mr Godwin Wiggle highlighted innovations and improved service delivery by member companies as well as growing confidence in the insurance system by the general public as other factors that accelerated the growth of the sector. The performance, according to him was equally driven by better regulatory supervision on account of the release of the guidelines for risk-based supervision, anti-money laundering and combating financial terrorism guidelines and the full adoption of the International Financial Reporting Standard for the 2012 financial year. He noted that enforcement of the provision of Section 50(1) and (2) of the Insurance Act, 2003 on premium payment and the regulation on premium collection and remittance began to yield the desired results, particularly in curtailing large volume of premium debt in the balance sheet of member companies. “Our association engaged in various activities aimed at enhancing the growth of the insurance industry in Nigeria during the year under review,” Olowude said.
He added that in a bid to leverage the nation’s comparative advantage in the oil and gas sector, the association commenced the re-establishment of oil and energy pool, which is officially recognised as Energy and Allied Insurance Pool of Nigeria. According to him, the key objective of the EAIPN is to enhance the level of participation of Nigerians and indigenous companies in the oil and energy industry. Olowude said that the association sustained its positive response to the menace of fake insurance documents with the inauguration of the Nigerian Insurance Industry Database.