Despite worries about the poor economic position OF the nation, participants in the insurance industry reported premium income of N532.7 billion in the first three quarters of the year.
The National Insurance Commission (NAICOM) published a bulletin on the performance of the sector market on Tuesday that included these information.
According to the report, the industry generated around N532.7 billion in gross premium income, representing a 15% year-over-year (y/y) rise.
The regulator claims that Nigeria’s recent growth in real gross domestic product (GDP) may be compared to the strong success of the financial services sector of the economy. It also mentioned the industry’s 14.9% growth rate as additional evidence of its remarkable achievement.
With oil and gas dominating with 30.8%, the non-life underwriting industry maintained its market dominance at 58.4. Motor insurance was second at 14.6%, followed by fire insurance at 21.3%. Miscellaneous, general accidents, and marine/aviation accidents made up 11.8, 11.2 and 10.3 percent, respectively.
The operational environment for the insurance business is still difficult because of both domestic and international economic difficulties, but its confidence is still high, as shown by the retention indicators.
The industry average was at 71.4%, while the life business retention for the time period was 94%, compared to a non-life ratio of 55%.
In fact, the life insurance industry achieved a commendable figure of nearly 94.8 percent throughout the time period under consideration. The amount of insurance claims paid as of September was N242.6 billion, which was a little less than during the same period in 2021, when #EndSARS protests led to a spike in claim payments. The claim was reduced by 2.3%.
During the current period, the ratio of total claims to gross premium was roughly 46%.