Insurers, striving to submit financial statements based on International Financial Reporting Standard (IFRS) 17 by 30 June 2024, have said that their efforts are hampered by the shortage of actuaries and the high cost of software.
The Nigerian insurance industry reported gross written premiums exceeding NGN1tn ($760m) for the first time in 2023.
Insurance companies in Nigeria are ceding their business to local and foreign reinsurers, while also incurring higher reinsurance expenses especially in overseas cessions due to the weaker naira.
There are 12m vehicles plying the roads across Nigeria, of which only 3.11m were insured as of the end of 2023, according to data from the Federal Roads Safety Corps (FRSC) and the Nigerian Insurers Association (NIA).
A thorough review of Nigeria's insurance legislation is needed to establish a fair and organised environment for both insurance companies and policyholders, according to Mr Ganiyu Musa, former CEO of Cornerstone Insurance.
Several insurance companies have failed to meet the 31 December 2023 deadline set by the National Insurance Commission (NAICOM) for the full implementation of IFRS 17.
The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the federal government to reconsider its classification of the National Insurance Commission (NAICOM) as a revenue-generating government agency.
Around 15 managing directors/CEOs and executive directors of 10 insurance companies have left their positions and their companies since the end of 2023, and more will follow.
Coronation Insurance has unveiled plans to delist from the Nigerian Exchange (NGX) to give itself more leeway to prepare for the impending risk-based capitalisation exercise in the insurance industry.
The challenges faced by the insurance industry must be addressed for insurers to exploit fully the opportunities that exist for them in 2024, according to insurance management consultant, Mr Ekerete Ola Gam-Ikon.