Nigerians spend N265.39bn on life insurance amid economic maladies

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Chuks Udo Okonta

Nigerians have continued to take refuge in life insurance as a means of wealth security for their families, as they spent N265.39 billion in nine months, amid tough economic realities.

According to the National Insurance Commission (NAICOM) in a document entitled: ‘Nigerian Insurance Market at a Glance – Q3, 2023’, individual life insurance class was the major driver of the insurance industry, contributing N265.39 billion, which is 36.4 per cent of the recorded N729.1 billion gross premium written.

NAICOM noted that group life, was second with 34.5 per cent; oil and gas, 28.9 per cent, fire, 23.6 per cent and motor 18.1 per cent.

NAICOM stated that the industry also had gross claims of N365.5 billion and net claims of N259.0 billion.

The insurance sector regulator submitted that the industry total size was N2.8 trillion, which break down revealed that total assets for non life was N1.74 trillion and total assets for life N1.07 trillion.

It said the industry’s total paid up capital was N422.3 billion; total capital, N848.9 billion and total statutory deposit N26.7 billion.

NAICOM posited that ratio of total claims to total premium was 50.1 per cent; ratio of claims paid to reported 70.9 per cent; ratio of claims paid to reported, non-life, 55.0 per cent and ratio of claims paid to reported, life, 94.9 per cent.

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