The latest financial reports of leading insurers show an escalation of claims volume, rising faster and overshadowing the growth recorded in premium income.
According to some stakeholders, the greed to take up some particular businesses, contrary to actuarial advise, contributed to the situation. Sovereign Trust grew its GPW by 23.5 percent to N10.5 billion against N8.5 billion, but its claims expenses went up by 46.2 percent to N1.9 billion from N1.3 billion.
Custodian and Allied Insurance GPW climbed by 15 percent to N36.7 billion from N31.9 billion, while claims expenses went up by 10.1 percent to N15.3 billion against N13.9 billion. He stated: “Many insurers have undone and keep shooting themselves on the foot by under-pricing the risk they carry, which they are still doing.
Speaking on the issue, former President of the Nigerian Council of Registered Insurance Brokers, Mrs. Laide Osijo, said that the concentration on corporate business to the detriment of the retail market has contributed to the marginal growth in GPW over the years.
Source: News Formal (newsformal.com)
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