CIIN urges underwriting firms on innovation

The Chartered Insurance Institute of Nigeria (CIIN) has called on insurance operators to be proactive and innovative to convert economic challenges to opportunities as risk bearers to increase the industry’s penetration.

The President of the Institute, Edwin Igbiti, in his New Year message to the industry players, said indeed 2022 was an interesting and remarkable year and availed the institute in particular and the Nigerian Insurance Industry with opportunities to evolve and revamp its business operations to measure up with the present global trends witnessed 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, maintained that the Nigerian insurance sector’s growth more than tripled in the third quarter of 2022 on the back of dollar premium income and growth in the annuity business.

“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 per cent 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 stated that 2023 projections for the industry by global economic experts, revealed that the insurance industry is projected to return to premium growth of 2.1 per cent yearly on average in real terms following total global premiums falling by an estimated 0.2 per cent in real terms in 2022 due to inflation.

“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.