Nigerian insurance agents rake in N141.39bn

Agents are gradually taking over the underwriting space through retail practice which has placed them top in life business premium drive
This is despite the challenges confronting them.

According to data obtained from the latest edition of the Nigeria Insurance Digest 2020, published by the Nigerian Insurers Association (NIA), agents controlled life business with N141.39 billion premium generated in 2020.

National President, Association of Registered Insurance Agents of Nigeria (ARIAN) Odewunmi Olakunle told reporters that the feat was achieved through personal sales of insurance, adding that the agents were working to also take control of the non-life business.

For their efforts, insurance brokers, agents and others earned N97.07 billion commission from underwriters and reinsurers in 2020.

Available data revealed that non-life insurers, paid N37.97 billion commission, life operators, N52.97 billion, takaful providers, N239 billion and reinsurers, N5.85 billion.

Insurance agents generated N164.08 billion, of the industries N508. 4 billion 2020 gross premium written, representing 32 per cent; brokers, N281.08 billion, which is 55 per cent; direct sales yielded N42.95 billion indicating nine per cent; banassurance N4.69 billion, one per cent; e-channel, N3.77 billion, one per cent and others, N11.86 billion, two per cent.

According to the NIA, out of the industry’s N508.44 billion GPW, N388.03 billion was generated from Lagos State.

NIA noted that while Lagos provided the highest premium for the sector, Yobe State gave the lowest amount of N17.78 million.

The Federal Capital Territory (FCT) came second with N48.08 billion followed by Rivers State with N21.98 billion.

Oyo State provided N7.83 billion, Delta State, N5.23 billion, Kaduna State, N5.17 billion and Edo State N4.16 billion.

In terms of claims, Lagos got, N177.54 billion, FCT, N17.36 billion and Rivers, N6.52 billion.

An analysis of GPW contributions by region showed that Southwest provided N402.32 billion; Northcentral N52.57 billion; Southsouth, N33.49 billion; Northwest N9.71 billion, Southeast N9.62 billion and Northeast N721.72 million.

On claims, Southwest got N182.94 billion, Northcentral N18.78 billion; Southsouth N10.21 billion; Southeast N4.10 billion; Northwest N3.17 billion and Northeast N374.79 million.

The Chairman, NIA, Mr Ganiyu Musa, said despite the huge challenges in 2020, the industry witnessed growth in its premium written as figures rose marginally by 3.6 per cent from N490.8 billion to N508.4 billion.

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