Operators point to reckless competition
By Rosemary Onuoha
THERE are indications that insurance companies are groaning under the weight of a surging claims portfolio as more risks crystallize, despite efforts to stem the tide.
The latest financial reports of leading insurers show an escalation of claims volume, rising faster and overshadowing the growth recorded in premium income.
The industry’s total Gross Premium Written, GPW, grew by 12.4 percent to N226.8 billion against N201.7 billion recorded in 2017.
But the total claims expenses on the other hand went up by 16.5 percent to N98.9 billion from N84.9 billion recorded in 2017.
The same trend was recorded in the previous year when GPW grew by 9.7 percent while claims expenses went up by 30.3 percent.
Industry operators have expressed worry that the trend would pose threat to the industry’s survival in the medium term if not checked.
According to some stakeholders, the greed to take up some particular…
