NIGERIA RE UNVEILS INSURANCE INDUSTRY OUTLOOK REPORT
Nigeria Reinsurance Plc, the premier reinsurance company in Nigeria, has released 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 and insurance outlook for 2016 in sub-saharan Africa while 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. http://nationalmirroronline.net/new/nigeria-re-unveils-insurance-industry-outlook-report/
