The Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh, has observed that the nation’s insurance sector has continued to enjoy steady growth with premiums increasing from N75 billion in 2005 to over N300 billion in 2015 .
Okoh, who made the observation as a special guest at the investiture ceremony of the 23rd Chairman of the Nigerian Insurers Association (NIA), Mr. Tope Smart, in Lagos on Wednesday, noted that following the impressive performance of the sector over the years and its growth potential, foreign investors have acquired substantial equity in local insurance companies.
The BPE boss was quoted in a statement issued by the BPE’s Head, Public Communications, Amina Tukur Othman, as listing some of the foreign investors as Old Mutual of South Africa which has substantial investments in Oceanic Insurance, Sanlam Insurance in FBN Life Assurance, Greenoaks Global Holdings of the United Kingdom in Ensure Insurance Plc (former Union Assurance),NSIA Participation of South Africa in ADIC Insurance and AXA of France with substantial investments in Mansard Insurance.
He maintained that despite this, there was still room for improvement in growth in the sector as the country, based on the 2016 statistics recorded the 10th largest growth in insurance sector in Africa with 0.27 percent insurance penetration premiums as a percentage of Gross Domestic Product (GDP) compared to South Africa, Namibia and Mauritius with 14.27 percent,6.87 percent and 6.4 percent respectively.
He attributed the nation’s not-too-impressive ranking to lack of consumer trust, low implementation of compulsory insurance and lack of adequately skilled professionals.
Okoh explained: “Whilst the foregoing may make for bleak reading, a number of factors, including, the emergence of a middle class with increased spending power, a large youth population who are technology savvy, and increasing female empowerment thus enabling women to make spending decisions, all make the sector ripe for growth.
“And the possibility of achieving this growth can become a reality with the right policy formulation, a sustained sensitisation programme to educate the population on the benefits of insurance, engaging the support of other sectors including the telecoms sector to increase market penetration for insurance”, he added.
The BPE chief restated the Federal Government’s commitment to attracting more investments into the sector through the privatisation programme with the Public Offer of Nigeria Reinsurance Corporation which would open soon amongst other initiatives and solicited the support of the association to make the offer a success.
He recalled that the Bureau had privatised some insurance enterprises which include, Niger Insurance Corporation, through Initial Public Offer (IPO); Nigeria Reinsurance Corporation, through core investor sale; and National Insurance Corporation of Nigeria also through core investor sale.
While commending the new NIA Chairman on his election, Okoh described him as a man, who throughout his career, had demonstrated a high degree of integrity, professionalism, capability and deep commitment to the insurance industry.
He expressed the hope that he would bring the same level of commitment and diligence to his new position and “will achieve even greater success.”
