The insurance industry in Nigeria continues to grow despite the economic situation – Thomas

Immediate former Commissioner for Insurance (CFI), Olorundare Sunday Thomas, has praised the insurance sector for its strength and resilience despite the intolerable economic conditions in the country.

Mr. Thomas stated this during a public lecture at the Federal University, Lokoja (FUL) on the theme: “Insurance Solutions for Wealth Creation and Sustainable Development” as it relates to the economic development of the country.

Mr Thomas said: “It is important to note that the insurance industry is one of the few sectors that continues to grow despite the economic recession and impacts of the Covid-19 pandemic in 2020.

“From premiums of N282 billion in 2015, the Nigerian insurance industry generated gross premium income of N616.1 billion in 2021, N789.7 billion in 2022 and a record N1.003 trillion at the end of December 2023 r.

“Additionally, the assets of the Nigerian insurance industry have increased from N827.5 billion in 2015 to N2.5 trillion in 2022 and N2.7 trillion in December 2023.

“It is therefore encouraging that the insurance industry is now more willing to meet the needs of policyholders through insurance solutions and products.”

Mr Thomas said NAICOM is a statutory agency of the Federal Government established under the National Insurance Commission Act, 1997 to regulate and supervise the Nigerian insurance sector and therefore act as an advisor to the government on all matters relating to insurance.

He stated: “Resource optimality is the true definition of economic growth focused on real growth, without creating other significant economic challenges and without negatively impacting other sectors of the economy.

“There is no doubt that mineral and human resource wealth can also partly define the wealth of a nation.

“But it is a misconception that countries with vast natural resources will automatically translate into economic growth, job creation and increased government revenues. This will help finance the fight against poverty, and many other positive reflections of the true benefits of development may turn out to be a mirage.”

He explained that statistics show that some countries deprived of natural resources are developing about four times faster than other resource-rich countries.

According to him: “This is simply because the dynamics of determining a nation’s wealth are changing. Therefore, we are inundated with the reality of taking on adventures that will ensure not only the creation of wealth, but also ensure its sustainability.”

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