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Insurers Prune Down Management Expenses

By Ebere Nwoji The National Insurance Commission’s (NAICOM) limit to management expenses of insurance firms may have started yielding fruits as operators, especially the big players are now taking steps towards ensuring reduction in their management expenses despite their huge premium. But the commission is yet to achieve similar success among some troubled firms whom available data showed still have high management expenses. Industry data released by the Nigeria Insurers Association(NIA) in the latest edition of its Insurance Digest, which x-rayed the 2019 financial positions of insurance firms revealed that some weak insurance firms placed under interim management and receivership have their management expenses exceeding premium income while market leaders with huge premium income recorded drastic reduction in their management expenses.

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