Agents Gradually Taking Over Underwriting Space, Generate N141.39bn Premium
By Ngozi Onyeakusi– The National President, Association of Registered Insurance Agents of Nigeria (ARIAN) Odewunmi Olakunle has stated that insurance agents are gradually taking over underwriting space through retail practice which has placed them top in life business premium drive.
According to data obtained from the Nigeria Insurance Digest 2020, published by the Nigerian Insurers Association (NIA), agents controlled life business with N141.39 billion premium generated in year 2020.
Olakunle; who made this known to SUPERNEWS Nigeria disclosed that the feat was achieved through personal selling of insurance, adding that agents are working assiduously to also take control of the non-life business.
For their efforts, insurance brokers, agents and others earned N97.07 billion commission from underwriters and reinsurers in 2020.
Available data revealed that non-life insurers, paid N37.97 billion commission, life operators, N52.97 billion, takaful providers, N239 billion and reinsurers, N5.85 billion.
Insurance agents generated N164.08 billion, of the industries N508. 4 billion 2020 gross premium written, representing 32 per cent; brokers, N281.08 billion, which is 55 per cent; direct sales yielded N42.95 billion indicating nine per cent; ban assurance N4.69 billion, one per cent; e-channel, N3.77 billion, one per cent and others, N11.86 billion, two per cent respectively.
According to the NIA, out of the industry’s N508.44 billion GPW, N388.03 billion was generated from Lagos State.
NIA noted that while Lagos State provided the highest premium for the sector, Yobe State gave the lowest amounting to N17.78 million.
The Federal Capital Territory (FCT) came second with N48.08 billion followed by Rivers State with N21.98 billion.
Oyo State provided N7.83 billion, Delta State, N5.23 billion, Kaduna State, N5.17 billion and Edo state N4.16 billion.
In terms of claims, Lagos got, N177.54 billion, FCT, N17.36 billion and Rivers, N6.52 billion.
An analysis of GPW contributions by region in the country showed that pSouth West provided N402.32 billion; North Central N52.57 billion; South South, N33.49 billion; North West N9.71 billion, South East N9.62 billion and North East N721.72 million.
On claims, South West got N182.94 billion, North Central N18.78 billion; South South N10.21 billion; South East N4.10 billion; North West N3.17 billion and North East N374.79 million.
Commenting on this development, the immediate past Chairman of NIA, Mr Ganiyu Musa, said despite the huge challenges in year 2020, the industry witnessed growth in its premium written as figures rose marginally by 3.6 per cent from N490.8 billion to N508.4 billion.
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