The Nigerian Liability Insurance Pool, opened a new 5-year rolling plan from year 2020 and showcase financial statements from that base year that was able to achieve a marginally better performance of 9.3% in its gross premium income of N1.13bn when compared with N1.04bn recorded in 2019.
The claims paid by the pool to its members equally witnessed a significant reduction of 30.21% with N172.8million paid as against N247.6million paid the previous year. However, this dip in claims was attributed to COVID-19 induced softly softly on economic activities leading to “the inactiveness of the environment.” The Pool also approved for payment a surplus of 167 kobo per share to members.
The chairperson of the Pool Ms Adetola Adegbayi, while announcing the results to the members at the hybrid annual general meeting of virtual and in person in the Pool head office in Yaba, Lagos (June 8), said the joint management balance sheet witnessed growth in some of its class of businesses such as motor third party liability 11/42%, workmen’s compensation 10.56%, professional indemnity 27.29% and, directors’ and officers’ liability 88.78%.
This surge across several businesses prompted the Chairperson’s “believe that the pool managers, with continued efforts, will be able to do better in years to come.”
Ms Adegbayi said the Pool’ frantic efforts to improve liability and casualty products is expected to receive boost from the pool managers who’s efforts last year already secured efforts that boost businesses and who are now expected to use the capacity of the pool to improve their revenue by pushing sales of liability and casualty products, such as “our annexed policies covering” professional indemnity, directors’ and officers’ liability, public building owners occupiers’ liability, builders’ liability and employers’ contingent liability which she said was developed by the pool to abate the effect of the Employers. Liability Act 2020 on statutory Workmens Compensation.
Adegbayi is confident that as members use the Pool to expand their risk appetite for comprehensive liability risks, they would ultimately cede into the pool to enhance its growth.