Expectations for a vibrant insurance sector are high this year. Omobola Tolu-Kusimo examines issues that may shape the industry and set the tone for a bountiful year.
The insurance sector has been growing at a snail pace. Between 2012 and 2016, its Gross Premium Income (GPI) result has hovered around N300 billion; about 0.2 per cent insurance penetration level and 0.4 per cent contribution to Gross Domestic Product (GDP). There are 57 insurance companies in the country.
Notwithstanding the impressive number of operating firms in this sector, the average number of policyholders is a paltry 1.5 million from a population of over 190 million.
Stakeholders blame the low patronage on factors such as the general apathy of the populace to insurance, a situation which arose from past knowledge of how insurers failed to pay claims to policyholders when there was an accident.
But despite improvements in paying claims in recent times, Nigerians are yet to understand the need to buy insurance for their daily activities. They are also yet to be aware of the benefits of insurance.
Besides, experts in the profession are convinced that the industry itself is yet to fully overcome the…
