Ogas at the top of insurance industry's market share

 

Chuks Udo Okonta

Twelve companies considered to be ‘ogas at the top’, are presently controlling the market share of the insurance industry, Inspen can report.

A report obtained from the Nigerian Insurers Association (NIA) stated that the market positions of the firms were determined by their gross premium income written in 2011.

Leadway Assurance Company Limited topped the list with 12.01 percent with a premium of N19.60 billion; followed by Custodian and Allied Insurance Plc; 6.17 per cent (N10.06 billion); AIICO Insurance Plc (Life)N10.01 billion; AIICO General Insurance Company Limited 5.16 per cent (N8.42 billion); NEM Insurance Plc 5.14 per cent (N8.34 billion).

Others are Mansard Insurance Plc 4.68 per cent (N7.63 billion); Industrial and General Insurance Plc 4.09 per cent (N6.67 billion); STACO Insurance Plc 3.97 per cent (N6.48 billion); Sovereign Trust Insurance Plc 3.93 per cent (N6.40 billion); Royal Exchange General Insurance Company Limited 3.61 per cent (N5.88 billion); Zenith General Insurance Company Limited 3.46 per cent (N5.64 billion) and Mutual Benefits Assurance Plc 3.35 per cent N5.47 billion.

According to NIA, about 90 per cent of the other operators are contending with the left-over markets.

Experts believe that the government, National Insurance Commission (NAICOM and operators need more to improve the state of the sector.

The President, Nigerian Shareholders’ Renaissance Association, (NSRA) Olufemi Timothy, said the government together with NAICOM has to do more to unlock the market.

 "The regulator which is a government agency has not been implementing policies like other regulators. For an instance, if somebody can walk into my office and demand for my tax clearance, if somebody can say before you take a visa, you must produce three years tax clearance, if somebody can say before you can drive a car, you must have a driver's license, I do not know why the government and insurance regulator cannot enforce the laws on compulsory insurances.

"I do not know why the government cannot prosecute those who do not insure their houses. I believe there is no house that is preventable from fire mishap. Looking at the compulsory insurances in our laws, is anybody enforcing that law? The government must join hands with the operators to develop the sector for when the sector thrives, the government would get more taxes.

"Nothing stops the government and NAICOM from instituting a compulsory life insurance for every child that wants to enter school in Nigeria. And the certificate would be used as a qualification for admission into schools. To un-lock the business, enforcement must be a priority, as it is the reason why people do not buy insurance just as we have in other nations," he said.

Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, called on operators to harness all the opportunities that have been provided by government and NAICOM to enhance their market share.

He urged insurers to improve on service delivery, adding that he has realised that service expectation exceeded service delivery, which now leads to customers’ dissatisfaction.