The National Insurance Commission (NAICOM) is expecting the insurance industry gross premium income (GPI) to rise to N6 trillion by year 2030.
This is just as the Commission expresses confidence that industry Gross Domestic Product (GDP) will increase from 0.4 per cent to over 3.0 per cent by 2030.
Head, Corporate Communications & Market Development, NAICOM, ‘Rasaaq ‘Salami, said this in a paper titled: ‘NAICOM’s Market Development Initiatives: The Journey so Far ‘delivered at the NAICOM 2022 Retreat for Journalists in Uyo, Akwa Ibom, State.
He noted that NAICOM plans to also create over 250,000 new jobs as it has put in place structures to promote insurance as a tool for stimulating growth of other sectors and raise funds for project development at the Federal and State levels.
Besides, the structures would also see to improvement of insurance consumer trust and confidence in the sector, increase insurance contribution to Gross Domestic Product (GDP) from 0.4 per cent to over 3.0 per cent; lower insurance gap from 94 per cent to 70 per cent and increase Industry Gross Premium Income from N630 billion in 2021 to N6.0 trillion by 2030, he noted.
He said market development is a costly affair and requires huge capital to keep going thus, funding is critical, adding that however, NAICOM will continue to work with all stakeholders to develop strategic, sustainable and implementable initiatives for deepening insurance penetration to enable optimal contribution to the Nigerian economy.
He said: “Various actions to expand the reach or tap into a different segment and unexplored market like retail and, other activities aimed at achieving insurance market development, have been put in place. The actions include; Market conduct guideline; bancassurance guideline; Takaful Insurance guideline; Microinsurance guideline; RBS Framework/Own Risk Assessment (ORSA); Nigerian Insurance Industry ICT guideline.
“Others are: Guideline on Insurance of Government Assets; Insurance Web Aggregators Operational guideline; establishment of Liaison with target state government – Lagos, Ekiti, Kano, and others; implementation machineries in place; sensitisation of NMSMEs on insurance products and benefits inherent in their consumption – Kano, Abuja, Lagos and insurance education of members of the public at the rudimental level (Sponsorship of radio and TV programmes)”.
He further disclosed that the commission has licensed four Takaful insurance companies and six Microinsurance companies to transact businesses in Nigeria; processed other four Microinsurance and three Takaful applications at various approval stages; collaborated and written approval of the Inspector General of Police (IGP) to partner the Commission on its enforcement of compulsory insurances across the country; sensitisation of Directors and Insurance Desk Officers of MDAs; Joint committees established with MFCT on one hand and the Federal Ministry of Transport on the other; joint engagements with the Federal and State Fire Services for the commencement of enforcement of Public Building Liability Insurance and interface with the FRSC to strengthen implementation of the compulsory 3rd party motor Insurance
He stressed that the commission is also optimistic that improvement of insurance consumer trust and confidence in the sector will also lower insurance gap from 94 per cent to 70 per cent in same period of 2030.
