The total premium earned by the insurance sector in the 2013 financial period rose by 15 per cent from N247.58bn in 2012 to N285bn.
The outgoing Chairman, Nigerian Insurers Association, Mr. Remi Olowude, disclosed this during the association’s Annual General Meeting in Lagos on Thursday.
“In 2013, the estimated volume of business underwritten by the industry was N285bn as against the 2012 figure of N247.58bn, which represents an increase of about 15 per cent,” he said.
Olowude said the improvement could be attributed to the relative stability and sustained growth in the economy, the increasing insurance awareness and government’s patronage of insurance services.
In addition to these, he added that there were innovations and improved service delivery by member companies as well as growing confidence in the insurance system by the general public in the course of the year.
The performance, he added, was also aided 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 fiscal period.
According to him, the 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.