By Rosemary Onuoha

Insurance operators under the auspices of the Nigeria Insurers Association (NIA) recorded N200 billion as Gross Premium Income (GPI) for the 2010 financial year. This is against N178 billion recorded in the 2009 financial year, which represent an increase of 18 per cent.

The marginal increase came on the heels of the difficult business environment and regulatory policies within the period under review which no doubt affected the estimated market growth rate.

Mr. Olusola Ladipo-Ajayi, chairman of the NIA who stated this at the association’s Annual General Meeting in Lagos last week, disclosed that insurance penetration which is a measure of the relationship between premium earned and the nations GDP remains at an unacceptable low level of 0.5 per cent while the insurance density, the measure of per capital consumption of Insurance services is at less than $10 per citizen, one of the lowest among emerging markets.

According to Ladipo-Ajayi, following the crisis that rocked the nation’s capital market in 2010, the performance of member companies were less than optimal and may have impacted negatively on some member’s shareholders funds and payment of dividend to shareholders.

He however hoped that the initiatives and reforms taking place in the sector which include the market development and restructuring initiative(MDRI), local content policy, dematerialisation and codification of insurance documents, members market agreement, NIA customer complaints bureau as well as the employees compensation act will turn the situation around for good for the industry.