BY NKECHI NAECHE-ESEZOBOR-The National Insurance Commission ( NAICOM) has said that the Takaful and Microinsurance contributed a gross premium of N2.350 Billion as at the end of 31, December 2019 and a total of N650 million was paid as clams in same year.
The breakdown shows that Takaful insurance companies generated a total of N2billion while Microinsurance companies generated N350million in the same year of 2019.
The commission disclosed this at the just concluded 2020 NAICOM Seminar for Insurance Journalists, at Uyo, Akwa Ibom that the claims paid by Takaful insurance companies stood at N540million while that of Microinsurance stood at N75million.
The head Takaful, NAICOM, said this in a paper entitled: “Insurance Development In Nigeria: The financial inclusion Option” that claims ratio for Takaful Insurance stood at 27 percent and Microinsurance at 21.5 percent bringing the total Claims ratio of both businesses to 24.25 percent as at the end of 31, December 2019.
On while both operations did not do well as expected in 2019, he identified lack of proper understanding of both concepts by the operators and consumers, poor public awareness and lack of skill man power as some of the challenges of their operations.
On the way forward he said the commission plans to hold a number of stakeholder engagements, workshops and sensitization programmes in 2021 in pursuit of its financial inclusion strategy which is achieved when all adult population have easy access to a broad range of formal financial services that meet their needs at affordable cost.
He added that with the engagement the Commission projected positive outlook for both Takaful and Micro going forward, adding that financial inclusion services include but are not limited to payments, savings, loans, insurance and pension products.
He noted that the market development and enforcement of compulsory insurance drive embarked upon by the Commission is expected to improve the uptake of Takaful and Microinsurance as well.
The federal government according to him through the CBN launched the National Financial Inclusion Strategy 2012 “to ensure that a clear agenda is set to significantly increase both access to and use of financial services by the year 2020.
He stated that the insurance industry target was also set at achieving 40% penetration amongst adult population by the year 2020 (from 1% in 2010).
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