Lagos accounts for N388bn of N508bn premiums generated in 2020 – NIA

The Nigerian Insurers Association (NIA) has revealed that out of the industry’s N508.44 billion Gross Written Premium (GWP) generated in 2020, Lagos alone accounted for N388.03 billion.

According to data obtained from the latest edition of the Nigeria Insurance Digest 2020, published by NIA, while Lagos provided the highest premium for the sector, Yobe State gave the lowest amount of N17.78 million.

In the report, Federal Capital Territory (FCT) came second with N48.08 billion, followed by Rivers State with N21.98 billion.

Oyo State provided N7.83 billion, Delta State N5.23 billion, Kaduna State N5.17 billion and Edo State N4.16 billion.

In terms of claims, Lagos got N177.54 billion, FCT N17.36 billion and Rivers, N6.52 billion.

An analysis of the GPW contributions by region showed that the South West provided N402.32 billion; North Central N52.57 billion; South South, N33.49 billion; North West N9.71 billion, South East N9.62 billion and North East N721.72 million.

On claims, South West got N182.94 billion, North Central N18.78 billion; South South N10.21 billion; South East N4.10 billion; North West N3.17 billion and North East N374.79 million.

The NIA report also claimed that agents are gradually taking over the underwriting space through retail practice which has placed them top in life business premium drive. This is despite the challenges confronting them.

According to the report, agents controlled life business with N141.39 billion premium generated in 2020.

For their efforts, insurance brokers, agents and others earned N97.07 billion commission from underwriters and reinsurers in 2020.

Available data revealed that non-life insurers paid N37.97 billion commission, life operators N52.97 billion, takaful providers N239 billion and reinsurers, N5.85 billion.

Insurance agents generated N164.08 billion, of the industries N508. 4 billion 2020 gross premium written, representing 32 per cent; brokers, N281.08 billion, which is 55 per cent; direct sales yielded N42.95 billion indicating nine per cent; banassurance N4.69 billion, one per cent; e-channel, N3.77 billion, one per cent and others, N11.86 billion, two per cent.

Speaking on the development, the National President, Association of Registered Insurance Agents of Nigeria (ARIAN), Odewunmi Olakunle, said the feat was achieved through personal sales of insurance, adding that the agents were working to also take control of the non-life business.

Also speaking, the Chairman, NIA, Mr Ganiyu Musa, said despite the huge challenges in 2020, the industry witnessed growth in its premium written as figures rose marginally by 3.6 per cent from N490.8 billion to N508.4 billion.