By Ebere Nwoji
The National Insurance Commission’s (NAICOM) limit to management expenses of insurance firms may have started yielding fruits as operators, especially the big players are now taking steps towards ensuring reduction in their management expenses despite their huge premium.
But the commission is yet to achieve similar success among some troubled firms whom available data showed still have high management expenses.
Industry data released by the Nigeria Insurers Association(NIA) in the latest edition of its Insurance Digest, which x-rayed the 2019 financial positions of insurance firms revealed that some weak insurance firms placed under interim management and receivership have their management expenses exceeding premium income while market leaders with huge premium income recorded drastic reduction in their management expenses.
Ebere Nwoji highlights events that shaped the insurance sector in 2020
The year 2020 is unarguably an exceptional year for the insurance sector and other businesses in the country.
This is due to the negative factors that slowed down normal business activities in the year.
These factors and their consequences exerted much pressure on government, cooperate citizens and individuals.
Against this backdrop, towards the end of the year, the Commissioner for Insurance, Sunday Thomas challenged insurance operators to rise to the task of reinforcing the economic resilience of individuals, businesses and the economy at large.
On their part, the insurers described the year as a challenging one that required operators at all levels to plan for the future to be in position to manage present and future risks confronting the industry.