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Category: Insurance

  • NIA 2024 Digest: NEM Insurance Tops Motor Insurance Market as Competition Intensifies

    NIA 2024 Digest: NEM Insurance Tops Motor Insurance Market as Competition Intensifies

    Lagos — The Nigerian Insurers Association (NIA) has released its 2024 Digest, ranking the top 10 insurance companies by motor insurance underwriting and revealing sustained growth and heightened competition in the segment over the past five years.

    According to the report, which was made available to journalists on Thursday in Lagos, NEM Insurance Plc retained its position as Nigeria’s leading motor insurance underwriter in 2024, recording the highest premium income in the category.

    NEM Insurance posted ₦23.483 billion in comprehensive motor premiums, ₦2.148 billion in third-party premiums and ₦156.8 million from third-party fire and theft policies, bringing its total motor insurance premium to ₦25.8 billion for the year. This represents a significant increase from ₦20.1 billion recorded in 2023 and ₦10 billion in 2020.

    The insurer first emerged as the market leader in motor insurance underwriting in 2015 and has maintained the top position for more than a decade, steadily widening its lead over competitors.

    Mutual Benefits Insurance Plc and Leadway Assurance Ltd. followed with strong performances. Mutual Benefits generated ₦14.05 billion in comprehensive premiums and ₦157.08 million in third-party premiums, bringing its total motor premium to ₦14.21 billion, while Leadway recorded ₦11.05 billion.

    Custodian and Allied Assurance Ltd. ranked fourth with ₦10.48 billion, closely followed by Consolidated Hallmark Insurance Ltd., which posted ₦7.02 billion, placing both companies among the top five motor insurance underwriters in 2024.

    Other insurers that featured prominently in the ranking included Sovereign Trust Insurance Plc, AIICO Insurance Plc, Coronation Insurance Plc, AXA Mansard Insurance Plc and Zenith Insurance Ltd., all of which recorded varying levels of growth during the review period.

    The NIA data showed that comprehensive motor insurance premiums among leading insurers more than tripled between 2020 and 2024, with NEM Insurance accounting for a substantial share of the expansion.

    Industry analysts attributed the growth in the motor insurance segment to stronger regulatory enforcement, rising vehicle ownership and increasing awareness of the importance of motor insurance among Nigerians.

    They noted that the segment remains one of the most competitive in the industry and is expected to continue expanding in the coming years, supported by consistent year-on-year growth among major players.

  • NDIC seeks stakeholders’ inputs towards robust DPAS Framework

    Following the recent review of its Differential Premium Assessment System (DPAS) Framework, the Nigeria Deposit Insurance Corporation (NDIC) has sought input from critical stakeholders towards making the document more robust and all embracing.

    In a release by the Director, Communication and Public Affairs Department, Bashir Alhassan Nuhu, the NDIC said the Differential Premium Assessment System Framework was reviewed to make it more risk sensitive and account for significant developments that had taken place in the Nigeria banking system since its adoption in 2008.

    It stated further that the review was informed by the need to ensure that the framework conforms to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices.

    Bashir said now that the review is at consultation stage, it is imperative for the Corporation to solicit input from its critical stakeholders, adding that the exposure draft has been placed on the Corporation’s Website, www.ndic.gov.ng for review.

    The release urged stakeholders to forward their input, comments and recommendations to NDIC Director, Insurance and Surveillance Department on aliyuam@ndic.gov.ng  latest by 30th June 2023

    The NDIC adopted the Differential Premium Assessment System (DPAS) in 2008 following the issuance of its framework in 2007 to differentiate premiums payable by Insured Financial Institutions based on their respective risk profile. 

    The DPAS was aimed at introducing fairness into the premium assessment process, encouraging effective risk management practices in insured institutions and applying a risk differential approach in the deposit insurance premium assessment of insured financial institutions.

    The DPAS was also introduced to enable banks in the lower risk categories to pay relatively lower premium rates, charge banks in the higher risk categories additional premium for their extra risks, incentivise regulatory compliance and mitigate moral hazard.

  • AIICO Insurance denies alleged breach of customer’s contract

    AIICO Insurance PLC has denied media reports that it was dragged to court by one of its lawyer clients over an alleged breach of contract.

    Mr Segun Olalandu, Head Strategic Marketing, and Communications Department, AIICO, said this in a statement in Lagos.

    Olalandu described the alleged court story’s headline as sensational and misleading.

    “Our attention was drawn to a widely circulating story on some online media with the headline: ’Lagos lawyer drags AIICO insurance company to court over breach of contract’, which we find to be sensational and misleading.

    “It is important to clarify that the headline implies that AIICO Insurance breached the contract with its client.

    ”Whereas the reality is that the client failed to fulfill his contractual obligations to the latter, which failure actually undermines the purport of this insurance contract,” he said.

    According to him, AIICO as a responsible corporate entity, choose not to engage in any commentary regarding the ongoing legal case to enable the legal proceedings to follow its due course.

    He noted that the insurer believed firmly in the country’s judicial system and its ability to determine the truth and dispense of the matter accordingly.

    Olalandu stated that the insurance firm remained steadfast in upholding its commitment to transparency, integrity, and the principles of justice.

    “Consequently, we refrain from making any public statements until the conclusion of the current judicial process, whereupon we will address the matter appropriately,” he said.

  • NAICOM issues guidelines to drive innovation of goods, services

    As part of its strategic objective to drive innovation of products and services, ensure operators are professional in the conduct of their businesses in line with best practices, the National Insurance Commission (NAICOM) recently issued Insurance Regulatory Sandbox Operational Guidelines.

    NAICOM, in a statement signed by the Head, Corporate Communication and Market Development, Rasaaq ‘Salami, added that other guidelines issued are: the Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.

    According to the guidelines made available to our correspondent, it is explained that the Regulatory Sandbox Operational Guidelines is issued in exercise of the powers conferred to NAICOM Act 1997 and the Insurance Act 2003.

    The guidelines stated that the  Regulatory sandbox refers to a consciously established relaxed regulatory environment for the testing of innovative products, services, business models, channels of distribution subject to regulatory discretions and set parameters that have potential of improving insurance inclusiveness and service efficiency in Nigeria.

    The guidelines outlined that it is aimed towards providing insurance institutions, other firms and persons the opportunity to test business models, products and services that will enhance efficiency in meeting consumers’ needs.

    It will also help to encourage innovation that will drive financial inclusion and positive competition, and to promote and deliver economic benefits, by lowering the cost of business operations.

    The guidelines stated that an applicant will be eligible to be considered for the sandbox after meeting some criteria.

    “Must demonstrate the potential to advance inclusive insurance – The proposed product, service or solution is genuinely innovative with clear potential to advance the objectives of Inclusive Insurance by improving accessibility, efficiency, security and/or quality in the provision of insurance services to consumers in Nigeria.

    “The Applicant shall be a registered business in Nigeria, the applicant must have a Fit and Proper Management and Leadership, must demonstrate that it has conducted sufficient diligence to understand the potential risks and/or legal and regulatory requirements for deploying the proposed insurance product, service or solution

    “The Commission will accept applications from the following categories of applicants: Insurers, Insurance Brokers, Loss Adjusters, any other applicant as the Commission deems fit,” it read.

    The NAICOM spokesperson noted that the Commission expects all operators to ensure compliance with the new guidelines to the benefit of all stakeholders.