Wednesday, 9 July 2014

Underwriters can generate over N300bn from compulsory insurance – Expert


Chuks Udo Okonta

 

Executive Director Leadway Assurance Limited Ms Tola Adegbayi, has said the over N28.68 billion premium said to have been generated by underwriters from compulsory insurance is far below expectations as they have the capacity to generate N300 billion from the business line.

She spoke at a forum organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, stressing that if the operators harness available opportunities, they can make great fortune from the business.

She called on her industry colleagues to be proactive and innovative, adding that 82 per cent of the opportunities provided by the law on compulsory insurance have not been scratched.

She expressed worry over the inability of insurers to underwriter large policies, adding that available statistics show that no insurer secures up to 700 new policyholders yearly.

 According to the National Insurance Commission (NAICOM) under the Market Development and Restructuring Initiative (MDRI) which commenced in 2009, between 2009 and 2012, policies written, surged from 72,180 to 152,181 a whopping increase of 111 per cent, and premium written with the period also rose from N14.93 billion to N28.68 billion increased of 92 per cent.

 

 

 

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