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The National Insurance Commission (NAICOM) has revealed a significant increase in the number of insurance agents, reaching a total of 6,700 agents. This uptick comes as stakeholders in the industry endeavor to enhance market penetration.
Dr. Usman Jankara, the Assistant Director of Corporate Strategy and Special Duties at NAICOM, shared this information while delivering a presentation titled ‘The Insurance Sector and the Nigerian Economy: Impact, Challenges, and the New Frontiers.’ He delivered the presentation at a retreat for journalists held in Uyo, Akwa Ibom State.
Dr. Jankara’s data also highlighted the presence of other intermediaries in the insurance industry. Among them were 600 insurance brokers and 56 loss adjusters, contributing to the overall landscape of the sector.
He further revealed the licensing distribution among different types of insurance companies in the country. The figures included 12 composite insurance companies, 13 life underwriters, 27 non-life underwriters, 3 reinsurers, 4 Takaful providers, 7 microinsurance providers, and 3 web aggregators.
In terms of financial growth, Dr. Jankara emphasized that the industry had shown resilience. He pointed out that from 2015 to 2022, the annual average growth in gross premium income surged from N282.9 billion to N726.2 billion, reflecting a substantial 15% increase.
Additionally, he highlighted the impressive expansion of industry assets, which had grown from N917.3 billion in 2015 to N2.328 trillion in 2022, marking a notable growth rate of 60.6%.
On the topic of profitability and risk management, Dr. Jankara noted that the Nigerian insurance industry’s loss ratio had remained within acceptable limits between 2015 and 2022. This performance had positioned the sector as one of the more profitable segments globally.
However, he also acknowledged some of the challenges faced by the insurance sector, primarily stemming from the demand side. Factors like insurance apathy, the complexity of insurance products, income levels, environmental influences, cultural beliefs, and societal norms were highlighted as hurdles that needed to be addressed to further strengthen the industry’s growth.
The increase in the number of insurance agents indicates a concerted effort by industry players to expand their outreach and improve insurance adoption across the nation.
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