The Director General of Nigerian Insurers Association, NIA, Sunday Thomas has projected that the Insurance Industry will achieve a market asset base of N16 trillion and premium income of N6 trillion by the year 2020,
The NIA Boss, who made the disclosure at the Access Bank’s Insurance Forum, Wednesday, May 4, however said for this to be achieved, the industry operators, must shun the current trend of unhealthy competition among them.
Thomas said the unhealthy rivalry has seen many of the underwriters charging premium rate that is as low as one percent while others charge at 0.85 percent rate instead of the standard rate.
He said if the industry operators were playing according to rules, in terms of premium charges, the industry would have in the past three years (2013) hit the above margin.
Currently, insurance industry ‘s premium income hovers around N312 billion while industry total asset base stands at about N715billion, according to industry estimates.
The NIA DG, said to meet the set target, the industry operators, must show vested interest in promoting retail insurance market segment, place interest of their customers at the centre of their business plan and strategy, as well as review and tailor their products to suit the present day customers.
He censured the current trend whereby industry operators, focus much attention on corporate business while neglecting retail business, adding, cost of purchasing the corporate businesses impoverishes the industry.
He argued that among the operators that chase the corporate businesses, none of them retains the corporate accounts for good five years without losing such account to competitors despite how jealously he guides it.