Balogun Predicts Bright Future For InsuranceBalogun Predicts Bright Future For InsuranceStories by WILSON ASEKOMHE
As insurers perfect their acts and improve in the working relationship between them and the regulators, especially in the compliance with various provisions of the Insurance Act, there are indications that the future of insurance in Nigeria is very bright.
According to a statement made by Mr. I. A. Balogun, Managing Director of Equity Assurance Plc who is also the immediate past Chairman of the Nigerian Insurers Association, the association is “working together with NAICOM in achieving the full implementation and compliance with this Act.
He stated that this was “especially in the areas of the domestication of insurances, compulsory insurance of public buildings, and regulation that will be in line with the rapidly evolving industry.”
While projecting into the future of the industry in Nigeria, Mr. Balogun explained that “the financial system strategy 2020 (FSS 2020) as it affects the insurance industry provides the blueprint to make Nigeria the safest and fastest growing financial system in the emerging market.”
The pathway to actualising this vision, he said, was cleared at the recent Insurance Future Summit held recently in Abuja.
What gives credence to the realisation of this vision is the fact that “issues relating to the new dynamic roles and expectations of the industry in meeting global standards and best practices in the finance sector” have been well deliberated upon.
He pointed out that the Nigerian Insurance Industry has also witnessed a major milestone with regards to the successful recapitalisation of insurance companies. This exercise saw a consolidation of insurance companies from 103 to 48 with attendant increased market capitalisation.
Mr. Balogun added that the market capitalisation has increased from N25.9 billion in 2006 to N206 billion in 20007.
This growth has also reflected in claims payment which has given additional weight to the insurers’ ability to pay claims. “During the period under review” he said, “the industry paid claims totalling N35.2 billion”
The transformation that has been witnessed in the industry is worth noting. He said “the significance of this transformation is evidenced by the section becoming the second most active sector in the capital market”
The Equity Assurance CEO, stressed that the “volume of business written grew from N82 billion to N117 billion during the year under review.”
This impressive result may be further enhanced in view of the enabling environment at the moment.
According to him: “This 42 per cent growth is expected to be surpassed in the coming year, as the effect of the pension reforms and Nigerian Local Content in the oil and gas sector impacts on the performance of the industry.
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