Amidst incidences of building collapses across the country, financial statements of insurance firms have shown poor patronage of Construction-All-Risk, CAR, insurance policy by property owners and developers over the years, a development about which little has been done by concerned regulators.
CAR policy caters to buildings under construction and insurance companies underwrite the risks under fire or engineering insurance policies in their financial reports.
Though Financial Vanguard findings from 13 insurance companies show steady growth in both fire and engineering policies, industry operators said that the source of growth is mainly from direct fire and machinery insurance and not from CAR.
An insurance expert told financial vanguard that CAR policies represent only about 20 per cent of total premium realized from fire and engineering businesses.
The companies reporting on the policy income are Axa Mansard, Cornerstone, Coronation, Linkage, Lasaco, Niger, Universal, Veritas Kapital, Nem, Consolidated Hallmark, Regency, Prestige and Mutual Benefits.
