The Nigerian insurance industry’s assets has recorded upswing by 11.8 per cent from N1.61 trillion at the end of the 2019 financial year to N1.8 trillion in June 2020.
The Central Bank of Nigeria (CBN) disclosed this in a report, titled ‘Insurance sector (general and life) consolidated balance sheet’, in June 2020 statistical bulletin.
According to the National Insurance Commission, the total assets stood at N1.26 trillion as of the end of 2018 financial period.
NAICOM expressed its drive to achieve 40 per cent financial inclusion in the insurance industry.
A report on ‘Insurance development in Nigeria; the financial inclusion option’ by Zubairu Darazo said the goal of achieving the target of 40 per cent adult population penetration would be pursued through a broad range of coordinated interventions.
He said they included “to provide enabling environment and framework for the excluded and low-income population to participate and benefit from insurances, through the development of legal and regulatory frameworks on Takaful and micro-insurance (the commission issued the two guidelines in 2013).
“Liberalisation of insurance intermediaries: referral agencies and new insurance agents. Define and implement insurance literacy programmes.”
He added that NAICOM would “enforce quick settlement of claims and sanctions for infractions (establishment of a dedicated department complaints bureau in the commission).
“Incentivise insurance companies to develop micro-insurance products, Takaful insurance and index-based insurance products to serve low-income/rural individuals.”
e said the commission projected positive outlook for both Takaful and micro going forward.
A number of stakeholder engagements, workshops and sensitisation programmes were lined up for the year 2021, he said.
According to him, the market development and enforcement of compulsory insurance drive embark by the commission was expected to improve the uptake of Takaful and micro-insurance as well.