Nigeria’s insurance sector recorded a gross premium of 235 billion naira between January and September 2017 according to the National Insurance Commission of Nigeria (NAICOM). A sad performance, considering that in 2016 this figure was carrying 325 billion naira.
A counter-performance deemed still “acceptable” by industry players. These evoke the difficult economic climate of 2017.
According to the figures obtained by the commission, the contribution of insurance to gross domestic product (GDP) in terms of penetration is only 0,48%.
The figures also showed that most of the industry’s activities were carried out by insurance brokers, with 75% of transactions being conducted by corporate clients.
According to Assistant Insurance Commissioner Thomas Sunday, NAICOM’s main mission is to expand the insurance market.
The international financial rating agency, Fitch Ratings, has nevertheless announced that the Nigerian insurance market will return to the real growth of gross premiums (GWP) in 2018, as the favorable fundamentals support the development of the long-term sector. term.
And the agency notes that consolidation and technological improvements could result in lower operating costs and insurers who will be able to reduce costs could gain market share by offering consumers better quality products.