Underwriting firms have attributed the poor performance of the insurance industry to the negative economic indices experienced in 2022, which has affected their business as a sub-sector of the financial system.
The Chairman of the Nigeria Insurers Association (NIA), Olusegun Omosehin, disclosed this at the 52nd yearly general meeting of the association held in Lagos.
According to him, the negative factors include perennial power outages, internecine conflicts between herders and farmers, the menace of kidnappers and bandits, insurgency in the North East, especially around the Lake Chad basin and poor infrastructural facilities.
He also listed galloping inflation, rising unemployment, flooding and other natural catastrophes, increasing poverty levels and geometric rise in the exchange rate of the naira to the dollar.
Omosehin further noted that lack of access to foreign exchange and continued depreciation of the naira, among others during the year under review, triggered high costs of operations for insurance operators.
He said that the country’s insurance industry would have done better in the economic downturn experienced in the year and its effect on all aspects of national life.
He, however, said the insurance sector dared these challenges and was able to grow its premium income to N726.2 billion last year, showing an increase of 33.9 per cent over N569.1 billion recorded in 2021.
Omosehin promised that the association would continue to work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial and technology space to promote insurance and increase its contribution to the gross domestic product (GDP).
In her report on the effort of the NIA council and administrative seat to enhance the operations of the sector for optimum performance, the Director General of the association, Yetunde Ilori, said the council, during the year under review, continued to engage the office of the head of a service of the federation to ensure the group life insurance scheme achieved its purpose of providing succor to the families of deceased public servants.
She said the council will not relent until all issues affecting the smooth running of the scheme are resolved in the overall interest of the public.
