Brokers top gross revenue with N257.28 billion for underwriters

Brokers in the nation’s insurance industry have generated N257.28 billion out of the N490. 80 billion gross premium incomes recorded by underwriters in 2019.

Data obtained from Nigeria Insurance Digest, a book that explains the performances of operators in the industry and published yearly by the Nigerian Insurers Association (NIA) disclosed that brokers controlled 52 per cent of the market.

The digest affirmed that the brokers were followed by insurance agents, who generated N166.20 billion or 34 per cent of the gross premium recorded in the year.

Direct sales yielded N47.24 billion or10 per cent while the bancassurance channel ranked in N4.20 billion; e-channel, N2.32 billion while underwriters got N3.06 billion.

According to one of the operators, who spoke with the Guardian, the low contribution from e-channel was mainly due to unethical practices in the form of rate-cutting.

The operator noted that the sale of policies, especially motor insurance on digital platforms, has been very difficult as the same policies are purchased at the open market below the regulated price.

Meanwhile, the digest stated that underwriters generated N2.45 million premiums from Taraba, N3.42 million from Yobe, N12.69 million from Jigawa, N30.33 million from Katsina, N73.10 million from Borno and N82.90 million from Adamawa in the year.

Bauchi produced N97.89 million, Gombe, N286.43 million, Sokoto, N622.86 million; Niger, N954.15 million, Nasarawa, N1.03 billion, Kano, N3.39 billion and Kaduna, N7.78 billion.

According to the NIA, Lagos State led in gross premium production with N343.68 billion, followed by Abuja, which produced N50.52 billion. Rivers generated N20.13 billion while Oyo ranked N10.33 billion.

The NIA maintained that the industry’s total gross premium stood at N490.8 billion while the net premium was N341.1 billion.

The total underwriting profit was N336 billion just as profit before tax was N48 billion, it said. According to the organisation, profit after-tax was N42.6 billion, gross claims paid was N185.9 billion while gross claims incurred was N182.3 billion.