The Nigerian Insurance industry has recorded a remarkable growth in the fourth quarter of 2023, with the Gross Premium Written reaching a staggering N1.003 trillion. This figure marks a significant 27% increase from the N790 billion reported in the previous year. “The statistics reflect a robust upward trajectory in the market’s performance as the year drew to a close,” stated the National Insurance Commission (NAICOM) in their recent market performance report.
The total assets of the insurance market soared to N2.67 trillion, with a capitalization of N851 billion. “Our industry has demonstrated a strong financial position through these figures,” NAICOM commented on the financial health of the sector. The net claims for the year amounted to N669.4 billion, with the non-life segment contributing N329 billion and the life segment slightly higher at N340.4 billion.
In terms of premium contributions, the non-life business dominated with 61.3% of the total, amounting to N615.1 billion. The life segment was also substantial, contributing 38.7%, valued at N388.1 billion. “The retention rates were particularly impressive in the life business, reaching approximately 87.7%, while non-life stood at about 54%,” the commission highlighted, with the overall market retention averaging 66.7%.
The non-life segment’s growth was propelled by the Oil and Gas and Fire Insurances, which contributed N167.8 billion and N148 billion respectively, representing 27.3% and 24.1% of the total premium. “These sectors have been the main growth drivers, showcasing the market’s dynamic nature,” NAICOM revealed.
As the quarter concluded, the industry reported gross claims of N536.5 billion, with non-life business claims at N312.3 billion and life business at N224.2 billion. The net claims settled stood at N382.9 billion, with a significant 95% attributed to the life business, a reflection of the stringent regulatory measures on claims settlement.
NAICOM also noted the positive impact of the “no-premium, no-cover” policy, which led to a decrease in outstanding premiums to just 1.6% of the total generated. “This policy has been instrumental in enhancing the industry’s financial integrity,” the commission stated.
