The insurance sector in Nigeria has recorded its highest growth index in a decade owing to a cumulative average growth rate of 13.9 per cent in oil and gas business.
In the past ten years, though oil and gas remained the main stay of Nigerian economy, growth in oil and gas insurance has been fluctuating, the Nigeria Insurers Association (NIA) disclosed in the latest edition of its insurance digest.
This perhaps was not far from the fact that large chunk of premium from this class of business goes abroad due to capacity problem.
Looking at comparison of year-to-year premium growth from this class of business according to the report, it showed that the sector in 2013, which saw the beginning of implementation of the sector’s ‘no premium no cover,’ realised N66.813 billion.
This was followed by 2017, when the sector recorded N63.917 billion premium in oil and gas. The sector recorded the least premium figure in oil and gas business in 2008 when its premium stood at N17.403 billion.
In 2010, it recorded mere N26.096 billion while in 2009, the premium jumped to N31.578 billion. In 2011, it climbed to N34.121billion, while in 2014, the figure moved up to N52.870billion. However, in 2015, it went down to N51.120 billion, while in 2016, it moved up again to N54.130billion.
Among the companies that played in the oil and gas business, in the past five years, Leadway Assurance took the lead in terms of premium generation. It was followed by Custodian & Allied Insurance Plc, which polled N13.212billion premium