Agents’ Contribution To Insurance Industry Rises To N218bn

Of the N726.2billion gross premium income generated by insurance industry in 2022 financial year, registered insurance agents contributed about 30 per cent of the income, translating to  about N218billion, LEADERSHIP findings revealed.

Analysis by LEADERSHIP WEEKEND revealed that, though insurance brokers still controls the market with about 60 per cent dominance, agents have stepped up their imprints in recent years, especially, in life insurance business where their expertise lies, increasing contribution to 30 per cent, while insurance companies’ marketers contributed the remaining 10 per cent.

Although, there is still no official figure yet to ascertain the exact percentage of contribution agents had in 2022, investigation revealed that the agency arm of the industry brought about 30 per cent of the businesses generated by insurance sector in 2022.

LEADERSHIP had earlier reported that, as at the end of fourth quarter, 2022, insurance industry gross premium income rose to N726.2billion, meaning that, the sector  grew its premium income when juxtaposed to the preceding year.

This was about N110 billion premium growth when compared to N616.6 billion gross premium income recorded in 2021 financial year end.

Before now, the about 10,000 registered insurance agents nationwide have increased their aggressiveness of premium income mobilisation to the insurance sector, through retail space and life insurance, although, tailing insurance brokers who have equally increased their penetration as well.

According to data obtained from the Nigeria Insurance Digest 2020, published by the Nigerian Insurers Association (NIA), agents controlled life business with N141.39 billion premium generated in 2020 financial year, while that figure increased further in 2021 and 2022 financial years as well.

Confirming this development, during a courtesy visit of the members of the Insurance and Pension Editors of Nigeria (IPEN) to the Association of Registered Insurance Agents Of Nigeria (ARIAN) Secretariat in Fadeyi, Lagos recently, its president, Mr. Odewunmi Kazeem said, the penetration and contribution of agents in insurance industry has increased significantly in the last few years, putting the contribution level at 30 per cent.

The president, who was represented by his vice, Mr. Jegede Olatunji, noted that, agents are leading in Life Insurance and retail insurance businesses as well, promising that, the aim is to further improve on this, such that, there would be rapid insurance penetration and acceptance across the country.

The feat, he said, was achieved through personal selling of insurance, adding that, agents are working assiduously to also take control of the non-life business, which will further increase their imprints in insurance industry.

He had earlier pleaded on the National Insurance Commission(NAICOM) to arrest the renewal issue that Registered Insurance agents are battling with to ensure they continue to improve on their imprint in a bid to deepen insurance penetration across the country.