Brokers can make about $1 million yearly in Lagos State, Mr. Gboyega Olanbiwoninu, Head, Business Development, Scib Nigeria & Co. Limited, a firm of Insurance Brokers, has said.

A report from the National Insurance Commission (NIACOM) said   insurance premium stood at N318 billion (or $1.1 million) last year.

He spoke on the sideline of a summit on insurance companies by the Lagos Chamber of Commerce & Industry (LCCI) and the Lagos State Safety Commission to keep Lagos safe and grow the insurance sector.

Olanbiwoninu underscored the role of insurance in developed economies, noting that in most developed economies, every aspect of life is insured. He recalled his experience in Switzerland where a compulsory students’ insurance was undertaken.

The modest premium of about $1 million, observers say, is as a result of the non-compliance with Insurance Act 2003 by the over 22 population in Lagos and the non-implementation of the relevant aspects of the law by the government.

He noted that that compliance with the law would grow the sector.

Olanbiwoninu said the the 2003 Insurance Act covers third party motor insurance liability, occupiers liability, health insurance, protection of life against building collapse and fire outbreak.

He advised Lagos to take advantage of her huge population and encourage the growth of the sector. He commended the state government for empowering the state Safety Commission to ensure the safety of lives and property by insisting that all aspect of existence in the state is henceforth insured.

According to him, about 60 car accidents happen daily in Lagos and on several occasions people resort to fisticuffs because they have no insurstate to go ahead with the planned implementation of the compulsory insurance scheme stressing that it will ensure the state is enlisted as one of the safest cities to live in the world as almost every aspect of every residents life will be insured.

Olanbiwoninu also said the implementation will further help to grow the industries contribution to GDP which is currently at an abysmal level of about 0.8 per cent.

He said: “The low contribution of insurance GDP may not be unconnected with the apathy shown to Insurance products by the insuring public whilst other reasons adduced to this include lack of awareness and demonstrated value. The compulsory Insurances have the potential of increasing the current gross income of the Insurance Industry by about 52 per cent at full implementation

“It is instructive to note that the joint task force between NIA and NCRIB set up towards the implementation of the Compulsory Insurance have put in place marketing campaigns to enlighten the Insuring public as well as present value in terms of records of claims payment, he added”. – Nation