The insurance industry in Nigeria was able to record a 22.2% growth in gross premium income for the financial year of 2016. Gross premium income recorded for 2016 is N380 billion compared to N311 billion in 2015. The figures were disclosed by Mr. Eddie Efekoha, Chairman of Nigeria Insurers Association during their annual general meeting in Lagos.
According to Mr. Efekoha, there were serious consequences that severely affected the operations of the insurance industry. Nigeria’s main revenue earner is crude oil. The price of crude oil fell below US$30 per barrel in the global market. Other factors include epileptic power supply, cutthroat inflation, conflicts between herdsmen and farmers, a poor economy and prolonged period of recession.
However, in spite of the challenges faced by the insurance industry, it continues to be the preferred destination of reputable investors in the global insurance market. Mr. Efekoha is optimistic that in spite of the challenges of a struggling economy, the suspension of the FRC corporate Governance Code and the implementation and improvements in “No premium, no cover” compliance will renew the government’s vigor towards improving the ease of doing business in Nigeria.
The government of Nigeria has also implemented improved anti-money laundering mechanisms and international financial reporting standards to attract potential investors to the insurance industry. The motor module of Nigerian insurance industry database has continued to record resounding success particularly in providing real-time online solutions for the elimination of fake insurance certificates and verification of insurance documents.
On the marine module, Efekoha has particularly noted that member companies are very consistent in uploading to the platform their marine policies. Members are encouraged to continue uploading while plans are being made to bring stakeholders into the scheme. Meanwhile, third party motor insurance policies have been fully digitalized to eliminate the existence of fake insurance certificates.
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