Insurers in Nigeria are hopeful that with the appropriation of NGN24.7bn ($60.3bn) by the Federal Government in the proposed Budget as premium for group life insurance covering the government workforce, 2022 is looking good for insurers.
The insurers said the allocated sum represents a 65% increase to the NGN15bn set aside by the government in 2021, according to a report in the newspaper The Sun.
The federal government had in its Appropriation Bill 2022 released by its Budget Office under Group Life Assurance for all ministries, departments and agencies, stated that NGN24.7bn was appropriated as premium for 2022.
If the federal government would do the same regarding insurance coverage of its assets, insurers would have a good year this year.
However, insurance executives have also expressed fears that rising inflation and the declining purchasing power of the population might affect the appetite for insurance.
According to insurers, this is because before now, Nigerians were unfamiliar with insurance and any little adjustment to their priorities always affects insurance.
The insurance sector, though, is optimistic that enforcement of compulsory insurance, if well carried out by government and its relevant law enforcement agencies, would cover the gap.