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Tag: NIGERIAN INSURERS ASSOCIATION

  • 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.

  • Police enforcement of 3rd Party Motor Insurance a game-changer — NIA

    Police enforcement of 3rd Party Motor Insurance a game-changer — NIA

    At a time of severe economic hardship when motorists lament the high cost of fueling their vehicles, the Nigerian Police has vowed to enforce procurement of third party vehicle insurance and the Nigerian Insurers Association (NIA) says the move is a game changer.

    The Nigerian Insurers Association on Monday lauded the Inspector-General of Police and the Nigeria Police Force (NPF) on the recent announcement on enforcement of Third-Party Motor insurance policy nationwide.

    It described it as a game-changer which would encourage greater public trust in insurance, reduce uninsured risks and stimulate economic activity.

    The Inspector-General of Police, Kayode Egbetokun, on January 10, said the Nigerian Police would commence total enforcement of the compulsory third party motor insurance, effective Feb.1.

    Egbetokun said the enforcement would also affect other relevant laws on compulsory insurance in the country.

    Reacting, the Chairman of NIA, Mr Kunle Ahmed, in a statement, in Lagos, welcomed the development, describing it as ‘a timely and commendable action’.

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    Ahmed said the decision aligned with the provisions of Section 68 of the Insurance Act 2003.

    The I-G stated that it was a significant step towards strengthening compliance, ensuring road safety and protecting motorists and other parties on Nigerian roads.

    He further noted that it was important to enforce the policy to improve risk management, industry innovation and foster economic growth.

    According to him, the enforcement of third-party motor insurance is not only a compliance issue, but also a vital strategy for ensuring financial protection for victims of road accidents and car owners.

    Ahmed explained that the third-party insurance policy also provides compensation for property damage and medical care for injured third parties, which further contributes to building confidence in the insurance sector.

    “The NIA recognises the immense potential of this enforcement to drive positive change in the insurance industry and the broader economy.

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    ” With millions of vehicles on Nigerian roads, this move is expected to increase the number of genuinely insured vehicles, reduce the prevalence of fake insurance policies, and create a more robust safety net for motorists and road users alike,” he said.

    According to him, the initiative also aligns with his administration’s agenda to proritise increasing awareness on the benefits of insurance, fostering innovation within the industry, as well as enhancing partnerships with key stakeholders to strengthen Nigeria’s insurance ecosystem.

    He said: “As the enforcement takes effect, I want to assure the insuring public and other stakeholders that our members are fully prepared to provide seamless access to third party motor insurance policies.

    “This will be done through authorised channels, ensuring that every Nigerian motorist can protect their risk and comply with the law.

    “We will work closely with our members to ensure efficient service delivery, innovative products, and improved customer experiences.”

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    “The NIA believes this enforcement is a game-changer for the industry, as it will encourage greater public trust in insurance, reduce uninsured risks, and stimulate economic activity.”

    The chairman said NIA had also set up initiatives to collaborate with the National Insurance Commission (NAICOM) in increasing public awareness and sensitisaton efforts.

    Ahmed explained that this is to educate Nigerians about the benefits of genuine motor insurance policies.

    He charged vehicle owners nationwide to take full advantage of the opportunity to obtain their third-party motor insurance policies through licensed and authorised insurers.

    “We can build a safer, more accountable, and better-protected road network for all Nigerians,” he said.