By Ebere Nwoji
The Nigerian insurance has recorded gross premium of N97.017 billion in the first quarter of 2015, compared to the N302.105 billion recorded in the whole of 2014.
This indicates a growth of about 28 per cent considering the average N75.5 billion quarterly premium recorded in 2014.
The first quarter 2015 result, according to the industry operators recorded such growth despite the market lull suffered by the industry during the period as a result of various political activities that prevailed that eroded public confidence and patronage of the various sectors of the economy. Operators said they are optimistic that given the performance, the industry's premium at the end of the year will doubled last year's figure.
The Commissioner for Insurance, Mr Fola Daniel speaking on the industry's potential at the 2015 seminar for insurance correspondents held in Ilorin, Kwara State, had expressed satisfaction at popularity gained by the industry in recent times.
He observed that the Nigerian insurance industry was becoming so popular not only in Nigeria but across Africa that it has occupied the second position in Africa from the fifth position it occupied between 2012 and 2013.
He, however, said the industry is not yet fully satisfied but would continue to strive until it has occupied the first position in Africa.
Daniel said the popularity gained by the industry has earned it federal government's recognition in that the present administration is interested in driving insurance to the fore front of the financial services sector in Nigeria.
He said the current administration led by president Muhammadu Buhari is very sensitive to the fact that insurance is key to building a virile economy and has therefore called for the contributions of the industry to the new transition committee set up by the administration.
Describing this as first in history for the industry from the federal government,Daniel said the future holds a lot for the insurance industry.
Speaking in the same vein, Director,Supervision, NAICOM,Mr Nicholas Okpara, in his paper on "NAICOM and Insurance Business Regulation in Nigeria, The Journey So Far" gave analysis of the industry's performance between 2014 and first quarter 2015 saying that total asset of the industry in the first quarter 2015 stood at N 793.6 billion while total liabilities stands at N444.4 billion.
He said shareholders' funds for the period stood at N343.4 billion while net claims for the period stood at N 23.7billion. Management expenses for the period was N 18.6 billion while investment income for the period stood at N9.5 billion.
He said the industry's net profit for period was at N15.43 billion.
The NAICOM's director said in 2014, the industry recorded gross premium rate of N302.105billion, with total asset standing at N711.4 billion. He said liability of the industry for last year stood at N422.7 billion while shareholders' funds stood at N352.5billion.
The industry's net claims for the period stood at N90.39billion, while management expenses stood at N61 billion. The industry's underwriting profit stood at N66.976 billion while net profit for the period stood at N28.430 billion.
He summarised the commission's regulatory activities under its present administration into three broad areas of policy holders' protection, financial safety and stability as well as market development.
Under policy holders' protection, the NAICOM director said the commission did this through activities such as consumers' education through seminars, workshops, sponsorship of TV/Radio drama, social media and other public enlightenment programmes as well as introduction of insurance into school curricula in secondary and tertiary institutions.
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