Insurance industry generates N726.2bn gross premium in 2022

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Chuks Udo Okonta

Insurance industry generated about N726.2 billion gross premium income in 2022, the National Insurance Commission (NAICOM) has said.

NAICOM stated this in Bulletin of the Insurance Market performance for fourth quarter of 2022, adding that the industry also paid N318.2 billion in the year.

The insurance industry regulator noted that the sector recorded a remarkable gross premium generation growth of approximately 36 per cent quarter on quarter, translated to about N726.2 billion and that as the industry crossed a N700 billion mark of premiums generated, available data also revealed continued improvement in retention propensity and, increased market size and profitability, comparative to the prior quarter.

NAICOM submitted that non-life business as in the prior periods, continued its dominance, contributing
57.4 per cent relative to the share of the life business 42.6 per cent, keeping about same position in prior period.

It noted that the proportional significance of Life in the industry was sustained a positive course in recent times reflective of the consumer’s confidence and awareness, adding that in-depth analysis of the Non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25 per cent, increasing by 2.4 per cent compared to the previous

It said the figure posted by fire insurance came a distant second of 22.2 per cent maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance 14.9 per cent, marine & aviation 12.2 per cent, General Accident 11.1 per cent and Miscellaneous 9.5 per cent followed in that

On the other hand, Life business was driven by Individual Life portfolio of 38.6 per cent even as its relative contribution fell by about 2.6 per cent compared to third quarter 41.6 per cent, it said.

It said in a contrasting path to the previous quarter, group life followed by about 34.5 per cent while annuity business contributed gross premium income of 26.9 per cent during the period.

It said the N318.2 billion claims represented a 31.2 per cent QoQ growth, stressing that it was achieved as a result of growing awareness and market expansion as well as consumer’s confidence.

“In a similar pattern, the net claims paid were reported at N244.3 billion, growing at 17.9 per cent QoQ during the same period,” it posited.

NAICOM said insights into the Non-life segment showed that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at 92.3 per cent signifying a nine points improvement as against its prior position and that fire insurance was the least at 46.3 per cent and the only class below average proportion.

It maintained that all other portfolios of general accident insurance – 80.7 per cent; Oil & Gas, 51.6 per cent; marine & aviation, 74.4 per cent; miscellaneous insurances, 86.1 per cent recorded a proportion above the average, of paid claims against gross claims reported.

The regulator said life insurance business on the other hand reported two points less in comparison to the position held in the prior period of 94.6 per cent of net claims paid compared to total claims reported during the same periodof 2021.

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