The Chairman, Nigerian Insurers Association (NIA), Mr Ganiyu Musa, on Tuesday said the insurance industry generated N508 billion Gross Premium in 2021, out of which N224 billion was paid as claims.
Musa, who said this at a news briefing in Lagos, stated that the N224 billion claims paid represented 44 per cent of the total premium.
He said that the association would continue to complement the efforts of National Insurance Commission (NAICOM) in its campaign on domestication of compulsory insurance in states.
“It is our expectation that laws on compulsory insurance can be domesticated in other states just as Lagos State has done.
“Beyond the efforts of the Commission, NIA has also upscaled its market development initiatives through strategic engagements with various states,” he said.
Musa said that the association’s initiatives include a work in progress with the Lagos State government in the enforcement and validation of genuine compulsory third party motor insurance.
He said the policy had been made mandatory by the Lagos State law through Automatic Number Plate Recognition (ANPR) device of VIS, through Nigerian Insurance Industry Database (NIID) Verification Platform.
Musa said NIA was discussing with the Lagos State Building Control Agency ( LASBCA) to use NIID Verification Platform for enforcement, verification, and validation of genuine compulsory Buildings Under Construction Insurance.
He said that the NIA was also collaborating with the Lagos State Safety Commission, Nigeria Council of Registered Insurance Brokers and Courteville on the implementation, enforcement and validation of genuine compulsory Occupiers Liability Insurance.
Musa noted that the policy was made mandatory by law for all public buildings through the Nigerian Insurance Industry Database (NIID) Verification Platform.
“The exercise will be launched on April 28 and enforcement will commence in May, so we are building capacity of its members to enhance compliance in line with the emerging regulations,” he said.
According to Musa, discussion is ongoing between NIA, NAICOM, Nigerian Shippers Council, Project IT Vendor-BrandOne and all other stakeholders in the maritime value chain on provision of cover for containers.
He said: “the stakeholders also include Shippers/ Importers, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies.
“This will be a risk management substitute for container deposits being made by the importer to the shipping companies, thereby eliminating capital flight from the country.”
Musa said that the association, with the help of her team of actuaries, was also having discussions on development of a cover for Export Credit Guarantee Insurance and Political Risks for the banks and exporters.
He said they were discussing the matter with NEXIM Bank, MNK Re Limited (Broker at LLOYD’S), PRAN and the Guild of Marine Surveyors.
On the Consolidated Insurance Bill 2020 before the National Assembly, the NIA chairman expressed optimism that it would be passed into law soon.
“We are happy to note that the Finance Act 2021 signed into law has resolved a major issue with regards to the definition of the components of minimum capital.
“The Association is engaging the NAICOM with a view to determining the next steps. nan“