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Chuks Udo Okonta
The insurance sector in Nigeria has a large number of competitors, but the limited financial capacity of some has made it difficult to deepen market penetration, the Chairman of Nigerian Insurers Association (NIA) Kunle Ahmed, has said.
He stated this in his statement presented at the association’s Annual General Meeting (AGM) held recently in Lagos.
He noted that the Nigerian insurance industry in 2023 saw significant developments and faced various challenges. “The insurance sector in Nigeria has a large number of competitors, but the limited financial capacity of some has made it difficult to deepen market penetration.
“The lingering effects of the Covid-19 pandemic and the reduction in oil output prompted policymakers to consider steps towards fostering stronger insurance providers,” he said.
The NIA Chairman submitted that the gross written premium of the Nigerian insurance market was N736.2 billion in 2022, and the market achieved over 35 per cent growth recording over N1 trillion in 2023.
He noted that the insurance market recorded total assets of N2.67 trillion and capitalisation of N 851 billion in 2023, adding that the net claims posted by the industry were N669.4 billion, with the non-life segment contributing N329 billion, while the life segment recorded N340.4 billion.
According to him, despite this achievement, insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty.
He said the association would continue to support, collaborate and work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services sector to promote the business of insurance through the development of innovative products especially for those financially excluded, and the enforcement of compulsory.
