Between 2004 and 2013, the Nigerian indemnification industry earned as premium N1.5tn from all life and non-life indemnification policies underwritten.
Statistics obtained from the Nigerian Insurers Association revealed that the sector made premiums of N69.4bn, N76.3bn, N82.3bn and N100.6bn in 2004, 2005, 2006 and 2007, respectively.
The figure rose to N150bn, N179.9bn, N185.7bn and N217.7bn in 2008, 2009, 2010 and 2011 respectively, while in 2012 and 2013, the indemnification industry earned N247.58bn and N285bn, respectively from the businesses underwritten.
According to the NIA, while the general indemnification business has perpetuated to contribute more to the sector’s earnings, the overall contribution of the life business has remained low.
From instance, the life business only earned N11.3bn, N14.6bn, N29.3bn, N34.3bn and N39.7bn in 2006, 2007, 2008, 2009 and 2010, respectively.
According to the NIA, the incrementation in the last financial year’s premium can be attributed to the relative stability and sustained magnification in the economy, incrementing indemnification vigilance and regime patronage of indemnification accommodations.
It noted that innovations and amended accommodation distribution by member companies as well as the growing confidence in the indemnification system by the general public availed the sector’s magnification.
The association verbalized that the performance was withal availed by more preponderant regulatory supervision on the account of the relinquishment of guidelines for risk-predicated supervision; anti-mazuma laundering and combating financial terrorism guidelines; and the adoption of the full International Financial Reporting Standards for the 2012 accounts.
It verbally expressed the enforcement of the provision of Section 50(1) and (2)… on premium payment and the regulation on premium accumulation and remittance had commenced to yield the desired results, particularly in terms of curtailing astronomically immense volume of premium debt in the balance sheets of member companies.
Between 2001 and 2005, according to NIA, the magnification rate of premium from life indemnification business stood at 24.5 per cent, 29 per cent, 22.4 per cent, 20.4 per cent and 6.1 per cent, respectively.
The magnification rate additionally rose from -1.5 per cent, 23.8 per cent and 85.8 per cent in 2006, 2007 and 2008.
The figure fell from 16.9 per cent to 15.9 per cent between 2009 and 2010, thus revealing an average magnification rate of 24.3 per cent in the 10-year period.
According to the NIA, the sector recorded an average magnification rate of 22.1 per cent between 2001 and 2010 in the non-life business.
The data revealed that between 2001 and 2002, the average magnification rate of the non-life business rose from 26.2 per cent to 35.6 per cent, but fell in 2003, 2004, 2005 and 2006 to 26.9 per cent, 25 per cent, 10.7 per cent and 7.4 per cent in that order.
The magnification rate of the non-life business, however, rose from 24.9 per cent in 2007 to 44.1 per cent in 2008, but fell again to 19.6 per cent and 0.9 per cent in 2009 and 2010.
The Chairman, NIA, Mr. Gus Wiggle, verbally expressed the association was committed to deepening indemnification in the country by sustaining the sector’s magnification.
“The association is appreciative of the efforts of the National Indemnification Commission in promoting microinsurance to deepen indemnification penetration in Nigeria. Our administration will take up the challenge by emboldening member companies to institute corporate structures that will ascertain the prosperity of the initiative,” Wiggle verbally expressed.
