Renowned rating agency, Agusto & Co. Limited, has predicted a 15 per cent growth in insurance gross premium income (GPI) for the financial year ended 31 December 31, 2020 despite the headwinds occasioned by coronavirus and the #EndSARS crisis in that year.
The 2021 edition of the agency’s report provides a comprehensive review of the insurance landscape in Nigeria and the near term expectation for the Industry. Contained in the report is a review of the coronavirus pandemic, as it affects the Nigeria insurance industry and strategies adopted by insurers to minimise the associated disruptions while optimising the opportunities provided by the pandemic.
According to the report, innovation in product distribution induced by the pandemic, regulatory-backed opportunities including the digitisation of marine insurance certificates and increasing awareness of the benefits of insurance products were some of the GPI growth drivers during the 2020 financial year.
According to Agusto & Co., the violence that trailed the #EndSARS protest in October 2020 adversely impacted the industry in terms of additional claims, which in turn impaired profitability for the 2020 financial year and would moderate the performance of some insurers in 2021.
It noted that the violence/ riot that trailed the protest could be a catalyst for insurance uptake, given that the insurance penetration rate has remained less than one per cent in Nigeria.