Nigeria’s insurance industry continues to grow despite economic situation

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The immediate past Commissioner for Insurance (CFI), Olorundare Sunday Thomas, has lauded the insurance sector for being strong and remaining resilient despite unbearable economic conditions in the country.

Mr. Thomas stated this at a public lecture of the Federal University, Lokoja, (FUL), which had the theme: “Insurance Solution In Wealth Creation and Sustainability,” as it concerns economic development of the country.

Mr. Thomas said: “It is important to note that the insurance industry is one of the few sectors that continues to record growth in spite of the economic recession and the impact of the COVID-19 pandemic in 2020.

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“From a premium of N282 billion in 2015, the Nigerian insurance industry generated gross premium income of N616.1 billion in 2021, N789.7 billion in 2022 and a record breaking N1.003 trillion as at the end of December 2023.

“Also, the asset of the Nigerian insurance industry grew from N827.5 billion in 2015 to N2.5 trillion in 2022 and N2.7 trillion as at December, 2023.

“It is, therefore, comforting that the insurance industry is now more willing to meet the needs of the insuring populace through insurance solutions and products”.

Mr. Thomas said that NAICOM is a statutory agency of the Federal Government established by the National Insurance Commission Act 1997 to regulate and supervise the Nigerian insurance sector and so serve as adviser to the government on all insurance related matters.

He stated: “The optimality of resources is the true definition of an economic growth centered on a real growth without creating other significant economic challenges or without negative effect on other sectors of the economy.

“There is no doubt that wealth in minerals and human resources can also partially define the wealth of a nation.

“But the misconception that countries with vast natural resources will translate to automatic economic growth, creation of jobs, increase government revenues. This will help to finance poverty alleviation and many other positive reflections of the true dividend of development may be a mirage.”

He explained that statistics have shown that some countries that are without natural resources grow at about four times more rapidly than other resource-rich countries.

According to him, “It is simply because the dynamics for determining the wealth of a nation is changing. This is why we are inundated with the reality of embarking on adventures that will guarantee, not only creation of wealth but also ensuring its sustainability».