Nigeria: Insurance industry generates N726 billion gross premium for Q4 2022

Nigeria’s insurance industry generated the sum of N726.2 billion as gross premium income as of Q4 2022.

This was disclosed by the National Insurance Commission (NAICOM) in a report titled “Insurance Industry Performance for Fourth Quarter 2022″, in Lagos.

NAICOM stated that the gross premium earnings for the period showed growth of 36.3 per cent quarter-on-quarter and 18 per cent year-on-year.

Gross Premiums

NAICOM stated that the Insurance sector generated the sum of N726.2 billion as gross premium income for the period, adding situation was remarkable, compared to the real growth of 3.5 per cent  recorded for Gross Domestic Product (GDP) over the same period, the statement read:

• “The result represented a growth proportion of 36.3 per cent, Quarter-on-Quarter and 18 per cent Year-on-Year. Growth due to consistent regulatory measures being carried out by the commission.”

Performance by sectors

They added that non-life insurance business during the period contributed about 57.4 per cent, relative to the share of the life insurance business of 42.6 per cent, which was about the same position in prior period, adding the non-life segment of the market showed that Oil & Gas business sustained its market share dominance at 30.25 per cent, increasing by 2.4 per cent, compared to the previous quarter.

Meanwhile, Motor insurance recorded 14.9.per cent, Marine & Aviation had 12.2 per cent, General Accident made 11.1 per cent and Miscellaneous had 9.5 per cent respectively as fire insurance came a distant second with 22.2 per cent

• ” While the life business was driven by Individual Life Portfolio of 38.6 per cent, its relative contribution fell by 2.6%, compared to third quarter, which recorded 41.6%.
• “In a contrasting path to the previous quarter, group life followed by 34.5 per cent while annuity business contributed gross premium income of  26.9% during the period under review. 

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Nairametrics reported earlier that insured Nigerians made claims of N318.2 billion on insurance companies in Q4 2022.

NAICOM added that the claims represented a 31.2 percent Quarter-on-Quarter growth from the previous quarter.

They added net claims paid amounted to N244.3 billion, growing at about 18 percent Quarter-on-Quarter during the same period, the statement read”

• “ They attributed the growth to rising awareness, market expansion, and consumer confidence.
• “NAICOM noted that the non-life insurance segment indicated that motor insurance led the result of claims settlement vis-a-vis gross claims at 92.3 percent, signifying a nine-point improvement as against its prior position.
• “Fire insurance is the least with 46.3 percent, which is the only class below average proportion.”