By Rosemary Onuoha

The insurance industry could not achieve the N1 trillion premium income target due to inappropriate risk pricing.

NAICOM

Deputy Commissioner for Insurance, Technical, National Insurance Commission, NAICOM, Mr. Sunday Thomas, who disclosed this, noted that the operators did not behave rationally by not pricing risks appropriately.

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Thomas stated: “It is true that we projected a trillion naira premium income some time ago, unfortunately we could not achieve that because insurance operators failed to behave rationally.

“The Commission proposed the N1 trillion for the market under certain circumstances and with a lot of assumptions and part of the assumptions was the effective enforcement of compulsory insurances, assuming that operators would behave rationally.”

Thomas said that the operators aborted the target through reduction of statutory premium.

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He explained, “There was a point when third party motor insurance was N5000, but it came to a point where people were charging N1000. I am just telling you why we are not at N1 trillion.”

He said NAICOM is committed to taking the industry to lofty heights, adding that the Commission has always reminded operators that they must pay the right premium.