Cornerstone Insurance Host Brokers Engagement

Leading underwriter, Cornerstone Insurance Plc has hosted its brokers engagement for 2023. The event witnessed the gathering of brokers who have entrusted their businesses to the company to an afternoon of relationship building and networking.

Speaking at the 2023 Brokers engagement meeting held in Abuja, Group Managing Director/CEO of the company, Mr. Ganiyu Musa appreciated the brokers for their active involvement in the outstanding financial performance of the company in the 2022 financial year. The insurance company reported N4 billion Gross Premium growth in 2022 to N24.6 billion as against N22.3 billion that it posted in the 2021 financial year.

Musa noted that the feat was achieved despite the challenges in the Insurance industry.

“We thank you for your confidence in the Cornerstone brand and for trusting us with your business. I assure you that the company will continue to uphold your trust and not disappoint you’’.

He raised concerns about insurance premiums in Nigeria which are largely underpriced as underwriters deviate from the basics of the profession and have collectively driven rates to an unsustainable level.

He reiterated that insurance being a specialized subject area is guided by a number of technical and professional considerations, as pricing is done on certain underwriting principles, technical rating, on risk management amongst others.

“However, as an industry, we have deviated from the basics of our profession, in the sense that we have all collectively driven insurance rates to levels that are not sustainable. And that is why we are suffering. Our profitability across the industry is below par. It is not comparable to what you have in the other arms of the financial services industry,” Musa said.

Drawing an analogy, he explained that the banking industry which is faced with similar regulatory constraints do better with pricing and in a unified manner than what obtains in insurance.

He notes for instance that “If the CBN says you cannot lend for more than 21 percent, or that you cannot pay less than two percent interest on current account, for the banks, that maximum lending rate is what applies to the majority of their customers. If anything, in addition to the specified lending rate they also charge documentation fees, legal fees, such that at the end the customer is borrowing above the specified rate.”

“But for us as insurers, faced with a similar regulation that says, for instance, motor premium should not be more than 10 percent, while the banks will take that rate as the minimum that they charge, insurers take that as the maximum and then drives it down.”

He said until December when NAICOM came to their rescue with a new guide on rating, the motor premiums had gone down to as low as one percent in certain cases.

About Cornerstone Insurance

Cornerstone Insurance is licensed and re-certified by the National Insurance Commission (NAICOM) to do both general and life business. As the first insurance company in Nigeria to provide customers with an online platform for insurance transactions, our services are technologically driven by cutting-edge insurance applications. These services are accessible with ease through the internet and on mobile.

At Cornerstone, we remain committed to both our core values of integrity, empathy, professionalism, innovation, and team spirit and our continued mission of delivering value beyond expectations through needs-based products and quality service.

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