The Nigerian Insurers Association, NIA, has said it is lamentable that the Federal and state governments’ contributions to the gross premium in the Nigerian insurance sector are just about 25 per cent only.

Thus, the private sector and individuals policy holders, according to the NIA, account for the 75 percent that makes up the balance. This level of contribution by the government, the association said, is not good enough considering the huge government’s contribution to the banks and banking sector’s balance sheets.

NIA explained also considering that the gross premium in the insurance sector which stood at N300 billion in 2012 according to a report by the rating agency, Augusto & Co, that the government contributed only about N75bn to the gross premium of the insurance industry in 2012.

The association said the 2013 figures are still being computed. The Director General of NIA, Mr. Sunday Thomas, made these disclosures, while making a presentation on Tuesday, noting that government’s 25 per cent contribution to the gross premium was only archived following the initiation and implementation of the compulsory group life insurance for employees in both the public and private sectors.

He said however that there are several other compulsory insurances policies which the government as well as the private sector may not be honouring, like the insurance of public buildings and third party motor insurance.

Considering that government has a significant number of motor vehicles and public buildings that remains uninsured, the NIA DG pointed out that insurance stakeholders are worried as to why the government which should set the pace in compliance for the private sector to cue in with the compulsory insurances is defaulting in this obligation, rather than leading pack in increasing insurance growth and penetration in the country.