Nigeria’s compulsory insurance premium reaches N29 Billion

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Nigeria’s commissioner for insurance, Fola Daniel this week announced that the country’s compulsory insurance premium had increased by 92 per cent from N14 billion to N29 billion at the end of 2012. Daniel said the number of insurance policies written under compulsory insurance between 2009 and 2012 also appreciated sharply by 111 per cent from 72 180 to 152 181.

He added that the industry has had some geometric projections over the last three years, and that the industry will achieve well over 100 per cent by the time the performance of 2013 is added to the figures available.He noted that despite the inability of the commission to attain the envisioned N1 trillion mark, considerable progress had been made, as evidenced by the 2012 results.

According to Daniel, the performance so far shows that insurance companies are voluntarily meeting up to their obligation without the commission getting involved, adding that they are also meeting up to their responsibility of claims payment. He added that the commission will consolidate on the gains made so far and ensure proper implementation of compulsory insurance products to be able to enhance the industry contribution to the country’s GDP.

He noted that the various state governments had continued to show interest in insurance business, adding that a group of underwriters have come together to enforce the motor vehicle third party liability insurance in Imo State in collaboration with the state government.Another group of 19 underwriters are also reportedly enforcing the occupiers’ liability insurance in Enugu State in collaboration with the state government.

Daniel said that the commission will continue to collaborate with other states’ governments to embrace these models of insurance.