Excessive discounts erode N1tr targeted insurance premium — Ogunbiyi


By Rosemary Onuoha

THE insurance industry may not be able to realize the N1 trillion premium income target for the Market Development and Restructuring Initiative, MDRI, because over 90 per cent of the industry’s income has been given out as discounts by operators.

Chairman of Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi, who stated this at a forum in Lagos, noted that the unhealthy competition in the industry has robbed the sector of great fortunes, stressing that about 90 per cent of the industry’s supposed revenue are lost to unnecessary discounts and other unfair pricing.

“There was a business we were underwriting for N1.4 billion in Mutual Benefits, at the last renewal, somebody took that same business for N250 million.

“The insurance industry is contributing virtually nothing to the GDP even as the practice of insurance as it is today is still very raw,…

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