The insurance industry has generated gross premium income of N532.7 billion in the third quarter (Q3) year-on-year (YoY), representing 15% growth over the 2021 figure.
This is contained in a bulletin on the performance of the insurance market released yesterday in Lagos, by the Spokesperson for the National Insurance Commission (NAICOM), Rasaaq Salami.
NAICOM said the non-life segment sustained its market dominance at 58.4% of the total premium generated, with oil and gas insurance leading the segment at 30.8%, while fire insurance followed with 21.3%.
Motor insurance stood at 14.6% while marine and aviation, general accident and miscellaneous reported a share of 11.8%, 11.2% and 10.3%, 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 25.5%, while individual life was at 41.2% of the premium generated during the period under review,” the Commission said.
According to NAICOM, the industry fostered at a higher rate of 14.9% growth rate, which was an impressive performance, compared to Nigeria’s growth in real Gross Domestic Product (GDP) of 2.3% during the same period.
On the other hand, the Commission said the insurance market reported gross claims of N242.6 billion, which was slightly lower compared to the corresponding period of 2021, signifying a decline of -2.3% in the total claims reported by policyholders.
The ratio of total claims to gross premium stood at about 46% during the current period, while the net claims paid on stood at about N207.2 billion, signifying 85.4% of all gross claims reported during the period.
It noted that the ratio of total claims to gross premium stood at about 46% during the current period, while the net claims paid on stood at about N207.2 billion, signifying 85.4% of all gross claims reported during the period.
NAICOM said life insurance business recorded 95% claims settlement against all the reported claims, while the non-life segment stood at 72.4% during the same period.
“The array of proportional claims settlement took a direct reflection of the market premium retention as motor insurance retained its lead, posting a claims settlement ratio of about 91%.
“This is followed by miscellaneous insurances reporting about 81% as paid claims ratio to all reported claims during the period, while general accident recorded 74.4%, marine and aviation stood at 74.3% and fire insurance gulped 59.6%.
“The oil and gas business stood out as the most improved portfolio in this respect at about 65.3% of claims settlement ratio, an increase of 41 points compared to its position of 23.9% recorded in the corresponding period of 2021.
“Similarly, the claims settlement ratio of the life business stood at 95% while the aggregate industry average was recorded at 85.4% during the quarter,” it said.
According to the commission, the experience in the oil and gas corner of the market with respect to claims settlement could be attributed to the increasing capital and underwriters’ growing confidence and dexterity in the market. (NAN)
