The Nigerian insurance sector is expected to end the year with a gross premium of N1 trillion from 726 billion recorded in 2022 through electronic covers.
The President, Nigerian Insurers Association, NIA,Mr. Olusegun Omosehin, disclosed this at the ongoing 2023 Insurance Meets Tech conference themed: ‘Unlocking Policy and Tech Bottleneck Hindering Disruptive Insurance Penetration’ in Lagos.
The NIA boss noted that the industry is also working with state governments to increase the adoption of electronic third party motor insurance policies in Nigeria.
He said: “Despite the economic headway that has been challenging our nation, we reaffirm our unwavering commitment to drive innovation, foster economic growth and secure the future of our businesses and national assets.
“As an industry we have made some progress particularly in the era of premium generation.
“For instance, the industry recorded a cost premium income of about 726 billion in 2022 and we expect to give you N1 trillion by end of 2023.
“However, this is still a backdrop from where insurance revenue should be in Nigeria.
“Looking at the largest economy in Africa with a population of about 200 million, we strongly believe that the growth we seek comes from the combination of several propelled forces and our industry’s ability to embrace technology and provide customers with cutting edge solutions.”
He noted that the industry is relentlessly collaborating with the regulators and other stakeholders to promote insurance culture and enhance its contribution to the national GDP.
According to him, the industry has continued to explore opportunities and transformative initiatives in the area of automobile insurance adding that they are partnering with several state governments, including the Lagos State government to deepen insurance penetration and increase the adoption of electronic third party motor insurance in Nigeria.
This, he noted, when fully operational, would help cover some of the existing gaps that are seen in the distribution of third party motor insurance in Nigeria.
Also speaking, Convener, IMT, Mr. Odion Aleobua, stressed that though the industry in the fourth quarter of 2022 recorded a staggering N726.2 billion in gross premium income, this, he said, is merely a scratch the surface of what’s possible.
According to him, “They are a testament to the enormous potential that lies within the industry. It indicates an industry with the capacity for exponential growth, and it’s our collective responsibility to unlock this potential.
“However, when we consider that in the same year, Zenith Bank Plc alone reported N945.5 billion in gross earnings in the same economy, it indicates the potential, and it is instructive that the insurance industry has yet to scratch the surface of what is possible.”
According to him, the burgeoning success of Insurtech, with substantial millions of dollars in investment, serves as a vote of confidence that underscores the importance of embracing technology and innovation to shape the future of insurance in Nigeria.
He is optimistic that Insurance Meets Tech 2.0 is a platform to harness this potential with its gathering of visionaries, innovators, and industry leaders committed to pushing the boundaries of what insurance can achieve in Nigeria.
He said, “As we embark on this journey together, let us remember that change is not only inevitable but essential for progress. Let us embrace the challenges before us and transform them into opportunities for growth and transformation.
“Let us harness the full potential of technology to make insurance more accessible, affordable, and reliable for all Nigerians.
On his part, Chief Executive Officer and Founder Caladium Consulting, Mr. Ayo Bankole, lamented the low penetration of insurance in Nigeria adding that this could be because a lot of times insurance seems abstract to an average Nigeria.
He noted that to increase penetration and adoption through technology, the industry must look at how to make the products unique to an average Nigeria. “The insurance industry has to leverage data and technology for competitive advantage.”
He said: “Every other industry today is harnessing technology. We see how technology has literally transformed the face of banking. Banks are not just using internet banking just for banking, but have made it a marketplace where you can buy virtually everything and that changed the game in the banking space and that is exactly what we need to happen in the insurance space.”
“There has to be a progressive and a deliberative effort to work together and drive the type of innovation and technology that we require in the industry.
“The banking sector has set the pace for digitalisation, they have some of the leverages in digital adoption, and the insurance sector needs to bank on it using multiple channels especially collaboration.”
He commended the outcome of IMT 1.0 and believes that this year’s edition will lead to increased collaboration, innovation and transformation for the insurance industry.