Insurance Industry Records N240Bn Transactions in 2012

Mr. Remi Olowude, chairman, Nigerian Insurers’ Association (NIA), has said that the volume of business underwritten by the insurance industry in 2012 was estimated at N240 billion.

Olowude, gave the figure at the association’s 2012 annual general meeting in Lagos.

He was represented by Mr. Godwin Wiggle, the NIA vice chairman.

According to Olowude, the figure represents 10.24 per cent increase against N217.7 billion recorded by the industry in 2011.

He, however, said that the industry had continued to grapple with inadequate infrastructure and unstable weather which exposed insured assets to natural disasters such as floods.

“The current performance of the industry has not been sufficient for it to reach the critical mass necessary to make the desired impact on the economy. The industry’s contribution to the nation’s gross domestic product remains at less than 1 per cent in 2012,’’ he said.

Olowude said that the association was reviving the Nigerian Oil and Energy Insurance Pool to improve the industry’s oil and energy underwriting capacity.

He noted that the association organised 14 training programmes for its members in 2012 which included collaboration with the GIZ of Germany to build capacity on micro insurance.

The chairman said that the association had completed and started deploying the first phase of the Nigerian Insurance Industry Database (NIID) Motor Insurance Module.

Olowude said that delay in claims payment had reduced as its members continued to live up to their obligation of prompt claims payment to policy holders.

Mr. Olorundare Thomas, NIA director-general, said that the association was working with the National Insurance Commission on the Money Laundering and Terrorist Financing Programme.

He said that the NIA had advised its members to take more steps to preserve the integrity of the industry.