The premier reinsurance company in Nigeria, Nigeria Reinsurance Plc, has uncovered a report, which contains a detailed review of the insurance market in 2015 with projections for 2016.
The Report is segmented into 3 sections with the first section dealing on the following topical issues:
- Economic review for 2015,
- Economic outlook for 2016,
- Insurance industry review for 2015 and Insurance industry outlook for 2016.
The second section dealt on:
- Economic review for 2015
- Insurance outlook for 2016 in sub-saharan Africa.
The third section captures:
- Nigeria’s economic review for 2015
- Economic outlook for 2016, 2016 budget (Assumption) breakdown
- Insurance industry review for 2015 Outlook for 2016” and insurance industry outlook for 2016.
The Report with the title “Insurance Industry Outlook for 2016”
retrospectively analyzed that the insurance industry in Nigeria had
largely remained underpenetrated with insurance density (insurance
premium as a percentage of GDP) at 0.225 per cent. It noted that the
industry recorded an estimated growth rate of 10 per cent in 2015, and
that insurance gross premium written rose to N300 billion (estimated) in
2015.
Also captured in the Report was the appointment of new
commissioner for insurance, Alhaji Mohammed Kari and a new president for
the Chartered Insurance Institute of Nigeria, CIIN., Lady Isioma
Chukwuma as well as the election of Mr. E. Okunoren as the new president
of the National Council of Registered Insurance Brokers, NCRIB.
The Report on the performance review of the Nigerian insurance industry in 2015 took note of 108 insurance brokers that were delisted by the National Insurance Commission, NAICOM, for failing to renew their licences. Similarly, it reported that NAICOM with the power vested in it in 2015 dissolved and reconstituted the board of an insurance company.
Also mentioned in the report is the opening of 57 insurance company
branch offices within the year under review in cities like Lagos, Port
Harcourt and Abuja, thus bring the total number of insurance company
branches to 853 in the country. It noted that NAICOM, within the purview
of its regulatory role, directed all registered insurance companies to
offset all their outstanding Claims on 30th September, 2015.
It adds that few mergers and acquisitions were recorded in 2015 with most of the acquisition done by foreign companies.
The report provides adetailed projections for the Nigerian Insurance
Industry in 2016, commencing the positive outlook that if the federal
government fulfills its promise of paying all its outstanding premium in
2016 (which worth N10b), insurance companies might have a better Gross
Premium Income (GPI) in 2016. with a Global perspective and review of
key African markets.
It discusses the outlook for different sectors, inherent
opportunities as well as strategies for navigating the financial market.
On a sad note, it projected that that if some state governments go
ahead with planned retrenchment exercises in 2016 that Non-life Premium
(especially 3rd party motor insurance) may drop.
Similarly, the Report projected that the unhealthy scramble for
customers in the industry may further force the pricing in the industry
to go down (ratecutting) except NAICOM intervene with minimum threshold
for all classes of business.
Source: Insurance Advice & National Mirror
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