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NAICOM Speaks On How ‘Rate Cutting’ Affects Insurance Business In Nigeria


Submit Your Financial Accounts Details On Or Before 30th of June- NAICOM Warns

The National Insurance Commission (NAICOM) has warned all insurance operators against rate cutting in 2019.

Naija News learnt that the Deputy Commissioner for Insurance, Technical, Sunday Thomas, who issued the warning in an interview  explained that the industry’s target of N1 trillion premium by 2020 may fail due to rate cutting by some operators.

Mr Thomas said, “there was a point that the third party Insurance premium was N5, 000, but some operators were charging N1,000. This made third party Gross Premium Written (GPW) to stand at N200 million that year.

“If the operators had charged the N5, 000 statutory premium, what is the market likely to produce? I am just telling you why we are not at N1trillion.”Some operators violated NAICOM’s directive, which also hurt their own businesses,” he said.

He, however, urged insurance operators to desist from violating the rules governing insurance practice in 2019.

He urged NAICOM to be committed to pushing the industry to lofty heights, and also ensure government agencies pay the right premium to be able to make their claims.