In order to boost the penetration of the business, the Chartered Insurance Institute of Nigeria (CIIN) has urged insurance operators to take initiative and be creative in order to turn economic issues into opportunities as risk bearers.
In his New Year’s message to the industry’s players, the Institute’s president, Edwin Igbiti, stated that 2022 was an interesting and remarkable year that provided opportunities for the Institute, in particular, and the Nigerian Insurance Industry to evolve and revamp its business operations in order to keep up with the current global trends in the industry.
“It is no gainsaying to state that the insurance industry is one of the most resilient and fast-growing sectors in Nigeria.
“Despite the numerous economic recessions, the effects of COVID-19, and the #End SARS protests, which resulted in millions of claims, the sector experienced laudable progress,” he said.
Igbiti argued that the third quarter of 2022 saw a more than threefold increase in the Nigerian insurance market, thanks to rising annuity sales and dollar premium income.
“To corroborate this, data from the National Bureau of Statistics (NBS), revealed that the insurance sector rose to 19.09 per cent at the end of the third quarter of 2022, as against 5.10 percent in the same period in 2021 and 6.09 per cent in the second quarter 2022.”
According to him, “I strongly believe that 2023 holds opportunities and possibilities for the Institute and the industry in general. This is because, in 2022, the Institute and industry bubbled with activities and events; all focusing on building a new insurance industry and how to advance and leverage technologies that would enable the sector to flourish in the face of new business trends and challenges.”
He said that according to industry predictions made by international economists, in 2023 the insurance sector is expected to resume real premium growth of 2.1% annually after 2022, when inflation caused an anticipated 0.2% decline in total worldwide premiums.
“According to the Swiss Reinsurance Institute Sigma Report, the growth is supported by a combination of easing inflation, market hardening in property and casualty lines, as well as stronger life insurance demand. This report carries with it opportunities for us to leverage and increase industry and the economy.”
“On the other hand, I know there will be challenges ranging from economic hurdles such as the potential for sustained inflation; to sustainability concerns including climate risk, diversity, and financial inclusion; to rapidly evolving consumer products and purchase preferences.
“Fortunately, insurance is a business of risk management so, the challenges pointed out above should be viewed as opportunities for us. On this note, I would like to affirm with confidence that 2023 will be a good year for all and that it will be a year filled with major achievements, victories, and feats for the industry,” he said.
