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The Nigerian insurance industry witnessed robust growth in the fourth quarter of 2023, with Gross Premium Written (GPW) reaching N1.003 trillion, marking a substantial increase of approximately 27% compared to N790 billion recorded in 2022.
This positive trend in market performance was revealed in the fourth quarter Insurance Industry’s Market Performance report released by the Statistics Department of the Directorate of Research, Statistics, and Publications of the National Insurance Commission (NAICOM) on Tuesday in Lagos.
NAICOM reported that the insurance market’s total assets surged to N2.67 trillion, with a capitalization of N851 billion in 2023. Furthermore, the net claims posted by the industry totaled N669.4 billion, with the non-life segment contributing N329 billion and the life segment recording N340.4 billion.
In terms of premium distribution, non-life business accounted for 61.3% of all premiums written during the year, amounting to N615.1 billion, while the life segment contributed 38.7%, valued at N388.1 billion. The market also saw a retention rate of approximately 87.7% for the life business and about 54% for non-life, with an aggregate market average retention rate of 66.7% in the period under review.
NAICOM identified Oil and Gas as well as Fire Insurances as the major growth drivers in the non-life segment, contributing N167.8 billion and N148 billion, respectively, representing 27.3% and 24.1% of the total premium.
Meanwhile, the industry reported Gross claims of N536.5 billion at the close of the fourth quarter of 2023, with total non-life business claims amounting to N312.3 billion and life business claims reaching N224.2 billion. The market average for gross claims stood at approximately 71.4%, while the net claims amounted to N382.9 billion.
NAICOM highlighted that 95% of net claims were attributed to life business, underscoring the ongoing regulatory measures on claims settlement in the sector.
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