Determined to back-up the assertion that brokers control 85 per cent of business in the insurance industry, the Nigerian Council of Registered Insurance Brokers (NCRIB) has pledged to begin annual publication of gross premium generated for underwriters by brokers.
The President of the NCRIB, Shola Tinubu, disclosed this at a media parley in Lagos, stressing that the publication will start next year.
“We have rough data for commission and premium, but we do not have data for gross premium generated by the broking sector. It is a challenge we have to rise up to going forward, because we need to be able to bring what we generate to the table. I think it is something we can do next year,” he said.
The volume of business written by insurance companies grew from N315.96 billion in 2016 to an estimated N363 billion in 2017, but the amount generated by brokers could not be ascertain due to paucity of data.
Investigations revealed that underwriters paid over N33.6 billion to brokers and agents as commission for premium generated in 2016. Information obtained from the Nigerian Insurers Association (NIA) noted that Non-Life Companies paid N22.40 billion, while Life Companies paid N11.19 billion commission to intermediaries in 2016.
According to the NIA, companies with large commissions are: Leadway Assurance Limited, which paid about N4 billion commission out of gross premium income of N52.71 billion; FBNInsurance Limited, paid N1.93 billion out of N9.91 gross premium income and AIICO Insurance paid N1.80 billion.
Others include: NEM Insurance, paid N1.80 billion and Axa Mansard Insurance, paid N1.49 billion. Others are Custodian & Allied Insurance, N1.37 billion; WAPIC Insurance, N1.30 billion and Zenith Insurance Company Limited, N1.09 billion