Nigeria’s insurance sector has continued on the part of positive performance, closing the fourth quarter of 2023 with an impressive premium income of N1.003 trillion, representing 27 per cent growth compared to the N790 billion recorded in 2022.
Analysis of the premium income distribution released by the National Insurance Commission (NAICOM) revealed that the non-life business accounted for the majority share, contributing 61.3 per cent of all premiums written during the year.
On the other hand, the Life segment contributed 38.7 per cent, amounting to N388.1 billion. The market’s retention rates exhibited varying trends, with the Life business retaining an impressive 87.7 per cent, while the Non-Life sector lagged behind at just about 54 per cent.
“The aggregate market average retention stood at 66.7 per cent during the same period.
The non-life segment of the industry was bolstered by strong growth in two key areas, namely Oil and Gas and Fire Insurance, which contributed 27.3 per cent and 24.1 per cent, respectively.
“This indicates the importance of these sectors in driving overall market growth and highlights the insurance industry’s role in mitigating risks associated with these industries.
In line with ongoing regulatory measures of NAICOM aimed at improving claims settlements, the Life business recorded approximately 95 per cent of net claims within the total recorded claims for the year.
This stands in contrast to the market average of about 71.4 per cent of the N536.5 billion gross claims reported at the close of the fourth quarter in 2023. The data suggests that the Life segment is adhering more strictly to claim settlements, potentially improving customer satisfaction and trust.
Furthermore, the market’s adherence to the “no-premium no-cover” policy introduced by NAICOM has led to a decline in outstanding premiums. The outstanding premium decreased by 1.6 per cent, demonstrating the effectiveness of this policy in ensuring timely payment of premiums and coverage for policyholders.
This reinforces the industry’s commitment to responsible and sustainable practices.
Statistics also indicate the market’s robust financial position, with total assets amounting to approximately N2.67 trillion and a capitalization of N851 billion in 2023.
“These figures reflect the industry’s ability to meet its obligations and provide a solid foundation for future growth and development.
Overall, the Nigerian insurance industry has demonstrated resilience and maintained its upward trajectory, achieving significant growth in premium income.
“With the increasing focus on regulatory measures, improved claims settlements, and responsible business practices, the industry is poised for continued success in the coming years.
