The nation’s insurance industry in the third quarter of 2022 recorded a gross premium income of N532.7 billion, showing a 15 per cent growth rate compared to the same period in previous year.
The National Insurance Commission (NAICOM) gave the revelation in its bulletin of the insurance market performance for the third quarter 2022.
This is also an impressive 14.9 per cent quarter on quarter, as continued steady growth from the second quarter of the year correlates with the current performance of the period under review.
According to the Commission, statistics of the insurance market performance for the period revealed some quality improvements in the market indicators including growth, claims settlement and profitability.
According to the Commission “From the ongoing, the market Statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth, retention, claims management experience and profitability, at levels of which the industry could be ruled as profitable, sound and stable. In cognisance also to the on-going digitisation and market deepening measures of the Commission, the outlook remains strongly positive”.
In the Market size “The industry recorded a total Asset of about N2.3 trillion, indicating a 9.0 per cent increase year on year.
” The industry balance sheet revealed about N1.1 trillion in Assets of Non-Life business while
the Life business stood at about N1.2 trillion” it added.
Further breakdown of the statistics reveals that, out of the total gross premium income, the non-life segment sustained its market dominance at 58.4% of the total premium generated
Insights in the segment show the oil and Gas was the leading driver at 30.8 percent with a distant second at 21.7 percent for Fire.
Motor Insurance stood third at 14.6 percent while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 11.8 percent, 11.2 percent and 10.3 percent respectively.
Life business on the other hand recorded 41.6% of the market production as its
share contribution gradually closes up.
“The share of Annuity in the Life Insurance business lagged at about twenty six per cent (25.5%) while Individual Life was at 41.2% of the premium generated during the period”.
In terms of claims, the industry recorded a -2.3 percent decrease in gross claims during the quarter under review, compared to the corresponding period of 2021.
The net claims paid on the other hand stood at about N207.2 billion, signifying an 85.4% of
The industry statistics for gross claims in quarter three of 2022 stood at N242.6 billion, representing 46 percent per cent of all premiums generated during the current period.
The net claims paid on the other hand stood at about N207.2billion, signifying an 85.4 percent of all gross claims reported during the period.
The Life Insurance business recorded a near perfect point of 95.0% claims settlement against all the reported claims while the non-life segment stood generously at above seventy (72.4%) per cent during the same period.
The Insurance market indeed remained profitable during the period, recording an overall industry average of about fifty-five (54.5%) per cent, a noteworthy performance though lesser, compared to 46.7% recorded in the corresponding period of preceding year.
The non-life segment loss ratio stood at 43.5 percent while the life business stood at 63.6 percent, indicating a less profitable scenario comparatively over the same period.