Nigeria’s insurance industry recorded N726.2bn gross premium income at the end of the fourth quarter of 2022
The National Insurance Commission disclosed this on Thursday in its ‘Bulletin of the insurance market performance’, a statistics department quarterly report of the insurance market for the fourth quarter, of 2022.
The industry also paid N318.2bn claims to its customers, while its total assets stood at N2.32tn in the fourth quarter.
It stated, “The gross premium income generated as of the fourth quarter of 2022 stood at N726.2bn, representing a growing proportion of about 36.3 percent, quarter on quarter and indeed, about 17.8 percent year on year.
“This is a remarkable situation compared to the real growth of 3.5 percent of Gross Domestic Product over the same period and, is attributable to consistent regulatory measures being carried out by the commission.”
According to the report, non-life business as in the prior periods, continued its dominance, contributing about 57.4 percent relative to the share of the life business at 42.6 percent, keeping about the same position in prior period.
The proportional significance of life in the industry was sustained a positive course in recent times reflective of the consumer’s confidence and awareness.
An in-depth analysis of the non-life segment of the market showed oil & gas business sustained its market share dominance at 30.25 percent, increasing by 2.4 percent, compared to the previous quarter.
The figure posted by fire insurance came a distant second of 22.2 percent, maintaining the same pattern of contribution to the gross premium pool of the market, while motor insurance (14.9 percent), marine & aviation (12.2 percent), general accident (11.1 percent) and miscellaneous (9.5 percent) followed in that order.
On the other hand, life business was driven by individual life portfolio (38.6 percent) even as its relative contribution fell by about (2.6 percent) compared to the third quarter (41.6 percent).
In a contrasting path to the previous quarter, group life followed by about 34.5 percent, while annuity business contributed gross premium income of about 26.9 percent during the period.
The report said, “Insurance claims reported during the fourth quarter stood at N318.2bn, representing a 31.2 percent QoQ growth. Possible attainment as a result of growing awareness and market expansion as well as consumer confidence.
“In a similar pattern, the net claims paid were reported at N244.3bn, growing at about 17.9 percent QoQ during the same period.”
Insights into the non-life segment showed that motor insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 percent, signifying a nine points improvement as against its prior position.
Fire insurance was the least at about 46.3 percent, the only class below average proportion.
All other portfolios of general accident insurance (80.7 percent), oil & gas (51.6 percent), marine & aviation (74.4 percent), and miscellaneous insurances (86.1 percent) recorded a proportion above the average, of paid claims against gross claims reported.