Insurance: Premium retained in Nigeria rises by 20%

By Nike Popoola

Thursday, 17 Feb 2011

The Commissioner for Insurance, Mr. Fola Daniel, has said that the National Insurance Commission has been able to raise the level of insurance premium retained in the country by 20 per cent in the last three years.

Daniel disclosed this in an exclusive interview with our correspondent, while explaining the composition of insurance business underwritten by indigenous and foreign firms in the country.

He said, “What I can say is that, in the last three years, we have been able to retain over 20 per cent more than we used to retain.

“The market retention is growing significantly, there are a number of companies that used to retain about 10 per cent of some risks before; NAICOM is now insisting that a minimum percentage of certain risks must be retained in the country as part of the quest to ensure that we reduce the flow of premium out of Nigeria.”

For instance, he said that the general accident business, “which consists of burglary risk, goods in transit and group personal accident,” has been successfully domesticated in the country.

Daniel added that premiums from motor insurance and life insurance policies had also been retained 100 per cent in the country.

He explained that there were different segments that were classified under the general insurance business and that different percentages of the risks were domiciled in the country.

The commissioner identified technical deficiencies and prejudice of the insurance principle of risk spreading as reasons the Nigerian insurance industry could not insure all the general businesses locally.

 

Source: Punch

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