Data released on Sunday by the Central Bank of Nigeria (CBN) has revealed that the Nigerian insurance industry’s assets increased from N1.61 trillion it was at the end of the 2019 financial year to N1.8tn in June 2020.
The apex bank stated this in its report, titled ‘Insurance sector (general and life) consolidated balance sheet’, in June 2020 statistical bulletin.
The total assets stood at N1.26tn as of the end of 2018 financial period, according to the National Insurance Commission (NAICOM).
NAICOM had expressed its drive to achieve 40 percent financial inclusion in the insurance industry.
NAICOM’s Head of Takaful Insurance, Zubairu Darazo, in a report on ‘Insurance development in Nigeria; the financial inclusion option,’ said the goal of achieving the target of 40 percent adult population penetration would be pursued through a broad range of coordinated interventions.
He said they included “to provide enabling environment and framework for the excluded and low-income population to participate and benefit from insurances, through the development of legal and regulatory frameworks on Takaful and micro-insurance (the commission issued the two guidelines in 2013).
“Liberalisation of insurance intermediaries: referral agencies and new insurance agents. Define and implement insurance literacy programmes.”
He added that NAICOM would “enforce quick settlement of claims and sanctions for infractions (establishment of a dedicated department complaints bureau in the commission).
“Incentivise insurance companies to develop micro-insurance products, Takaful insurance and index-based insurance products to serve low-income/rural individuals.”
He noted that the commission projected positive outlook for both Takaful and micro going forward.