Nigeria Insurance Companies pay N54.11bn commission to brokers-NIA
Despite economic pressure occasioned by COVID-19, the Nigeria insurance industry has continued to maintain commitment and transparency in claims and commission payment.
According to the Nigerian Insurers Association, (NIA), insurance companies have been consistent in payment of claims and commissions as such making the industry more attractive.
The NIA revealed that Insurance brokers, agents and other intermediaries earned N54.11 billion commission from underwriters in 2019.
The Association disclosed that non-life insurance firms paid N35.09 billion commission to the intermediaries, while life operators paid N19.02 billion.
The data indicated that FBInsurance Limited paid the highest commission amounting to N5.20 billion, followed by AIICO Insurance Plc., which paid N5.04 billion.
It added that Leadway Assurance Limited, paid N5.01 billion; NEM Insurance Plc., paid N3.11 billion and Coronation Insurance Plc., paid N3.11 billion.
The Association declared that insurance brokers generated N257.28 billion out of the N490. 80 billion gross premium income recorded by underwriters in 2019.
Brokers, who are major players in the insurance distribution channel, controlled 52 per cent of the insurance market.
The NIA hinted that the brokers were followed by insurance agents, who generated N166.20 billion, which was 34 per cent of the cumulative gross premium recorded in the year.
Direct sales yielded N47.24 billion, 10 per cent; bancassurance channel provided N4.20 billion; e-channel, N2.32 billion, 0 per cent and underwriters got N3.06 billion from other channels.
