Insurance brokers has retained the largest market share of premium generation and commission earning in the sector, with 52 per cent allocation.
Recent statistics released by the Nigeria Insurance Association (NIA), in its annual insurance digest, showed that in 2019, insurance brokers generated N257.28 billion out of the N490. 80 billion gross premium income recorded by insurance underwriters during the year.
This represented 52 per cent of the entire premium generated by the sector during the period.
The performance was followed by insurance agents, who generated N166.20 billion, representing 34 per cent of the cumulative gross premium generated by the insurers during the period.
Direct sales by the insurers yielded N47.24 billion, representing 10 per cent; while bancassurance channel yielded N4.20 billion, representing 10 per cent.
Also, e-channel attracted N2.32 billion and underwriters from other channels of distribution got N3.06 billion, representing three per cent.
In 2018, Insurance brokers generated N220.89 billion out of the N413.85 billion gross premium income recorded by underwriters.
This represented 53.37 per cent of the gross premium income generated by the sector in 2018.
According to the NIAdigest, insurance agents generated N107.83 billion, representing 26.05 per cent; direct sales yielded N29.01 billion, representing 7.01 per cent, while bancassurance yielded N30.37 billion, representing 7.34 per cent.
The report showed that e-Channel sales recorded N1.50 billion, representing 0.36 per cent while sales through other distribution channels stood at N24.25 billion, representing 5.86 per cent, of the entire premium generated during the period.
A breakdown of what each underwriting firm generated as gross premium revealed that the top leading firms were Leadway Assurance Limited, which posted N87.52 billion; AIICO Insurance Plc, N25.98 billion and FBNInsurance Limited, N23.03 billion.
In terms of claims settlement, the top three firms were Leadway Assurance Limited, which paid out N57.93 billion; AIICO Insurance Plc, N28.55 billion and African Alliance Insurance Plc, N8.75 billion.
In terms of commission paid by the insurers to the premium generators, the NIA digest stated that non-life operators paid N29.33 billion as commission.
It stated that in the period under review, FBInsurance Limited paid the highest commission amounting to N5.20 billion, followed by AIICO Insurance Plc, which paid N5.04 billion.
Leadway Assurance Limited, paid N5.01 billion; NEM Insurance Plc paid N3.11 billion and Coronation Insurance Plc paid N3.11 billion.
Comparing the commission paid by the insurers in 2019, to previous years, the NIA digest stated that in 2017, insurance brokers and agents were paid N38.89 billion as commissions by underwriters.