Insurance companies receives N28.7 bn as premium in 2012 – Official

The Commissioner for Insurance, Mr Fola Daniel, on Friday said insurance companies received an estimate of N28.7 billion in 2012 as premium on compulsory insurances in the country. Daniel, who is also the Chief Executive Officer, National Insurance Commission (NAICOM), made this disclosure at the 2014 Insurance Seminar for Insurance Correspondents.

The compulsory insurance packages are the Group Life, Builder’s Liability, Occupiers Liability, Motor Third Party and Health care Professional Liability Insurances.

According to him, the volume of premium written in 2012 alone is a clear indication that insurance is gradually growing in the country. “I am glad to let you know that even though the one trillion naira targets for compulsory insurance are yet to be attained, considerable progress has been made given the statistics available.

“This is evident in the number of policies written by companies under this class of insurance between 2009 and 2012, which rose sharply from 72,180 to 152,181, representing 111 per cent increase. Also, the volume of premium written in this class rose sharply from N14.93 billion in 2009 to N28.68 billion in 2012, representing an increase of 92 per cent,’’ he said.

Daniel said also that the volume of claims settled by insurance companies under the country’s compulsory insurance had also increased. He attributed the increase in patronage in insurance products to the added interest being shown by various state governments like Imo, Anambra and Delta to insurance policy.

Daniel said the increase in patronage could also be attributed to the reforms taken by the commission in its bid to provide the enabling environment for insurance to strive.

These reforms, according to him, are the introduction of Risk-Based Supervision, Migration to International Reporting Standards, Claims Settlement Reforms and Financial Inclusion and Literacy programmes.

To deepen insurance practice in the country and settlement of claims, Daniel said the commission was working to set up nationwide call centres to aid them in addressing this.

“By first week of June, NAICOM will unveil the first ever Insurance Call Centres to listen and address complaints from Nigerians on insurance claims and settlements.

“I can assure you that through the call centres, we will listen and follow up complaints to make sure that insurance companies do not default in paying real claims,” he said.