Business

Volume of business recorded by insurance sector hits N490bn

The volume of business recorded by the insurance sector has increased from N413.8 billion in 2018 to about N490 billion in 2019

The increment represents a 15.55 per cent increase.

The outgoing Chairman of the Nigerian Insurers Association (NIA), Tope Smart, made this known at the virtual 49th Annual General Meeting (AGM) of the association, as he hands over the baton of leadership to a new Chairman, Ganiyu Musa. Musa is the Managing Director of Cornerstone Insurance Plc.

Speaking on the 2019 financial report of the association, Smart stated the sector has continued to perform its role of financial intermediation and business restoration in line with its mandate, despite the enormous challenges.

He 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.”

“The association in line with its mandate of promoting the interest and business of its members, engaged in several activities and initiatives in the past year.

However, the outbreak of coronavirus pandemic which has become a global cause for concern has posed a serious challenge to the association and the entire Nigerian insurance industry.

The virus has not only disrupted businesses but also forced member companies to activate their business continuity strategies and we are happy that they have responded adequately to the challenges posed by the disease.

“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”, he added.

Meanwhile, the association also generated a proceed of N196 million from data upload on the Nigerian Insurance Industry Database (NIID) in 2019.

Its Director-General, Mrs. Yetunde Ilori, said the NIID system, in its 10th year of implementation, has been effective in transforming the motor insurance policy landscape of the insurance industry, adding that the NIIP – a unified platform for the sale of third party motor insurance cover has since been deployed and is running live for business transactions.

“As part of efforts to promote third party motor insurance uptake among the populace, the Secretariat embarked on a mass media campaign on insurance awareness tagged Wetin you carry with deployment of fully kitted insurance squad.

‘’During the campaign, there was an upsurge in the use of the USSD code *565*11#, which enables policyholders and enforcement agencies confirm the authenticity of motor insurance policy through their mobile phones,” she stated

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