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NIA, IMF to harness potential of insurance for economic growth

The Nigerian Insurers Association (NIA) and the International Monetary Fund (IMF) are exploring means to harness and turn the potentials of the insurance industry into economic growth for the country.

Director-General of NIA, Mr. Sunday Thomas, who disclosed this in Lagos, said the representatives of the association’s Governing Board led by Professor Joe Irukwu, has met with the representative of the IMF, Dr. Rodoyo Wenrhan to discusse how the nation can maximise greatly from the enormous insurance potentials.

He said the parties hope to work out how to sustain stability on insurance contributions to the economy.

He said, “The representatives of our Governing Council led by Professor Joe Irukwu, has met with the representative of the IMF, Dr Rodoyo Wenrhan, to explore the potentials of the insurance industry as an economic growth driver in Nigeria.

“Among the objectives of the mission was to ensure stability is sustained within the system. The representative of the IMF stated that the outcome of the meeting is expected to be published with recommendations made on how to move the insurance industry forward”

Insurance industry is said to have within the last three years, recorded a growth of one million subscribers.

According to the Commissioner for Insurance Fola Daniel, the number of insured in Nigeria was 500,000 as three years ago, but presently stands at about 1.5 million, out a population of over 165 million.

Daniel noted that the Gross Premium Income (GPI) has also increased from N157 million in 2010 to N250 million in 2012, adding that the increase in the ratio of premium to Gross Domestic Product (GDP) moved from below 0.5 per cent to nearly one per cent.

He said increase in local capacity has moved from less than 10 per cent to 48 per cent, adding that the commencement of implementation of Section 50 of the insurance Act 2003 has improved financial assets of operators.

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