Uncertainties drive more Nigerians to insure their lives

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Chuks Udo Okonta

The high rate of uncertainties in the country is moving more Nigerians to embrace life insurance in securing their lives.

This was revealed in a document recently released by the National Insurance Commission (NAICOM), which stated that individual life insurance policy held a major driver position at 41.8 per cent of the premium generated by insurance companies in the second quarter of this year 2022.

In time past, annuity policy and group life cover do top premium generation in life insurance business.

According to NAICOM, life business during the second quarter, recorded 40.6 per cent of the insurance
market production as its share contribution, gradually closes up.

The insurance industry regulator noted that the share of annuity in the life insurance business logged at about Twenty-Five per cent (24.7 per cent) while
individual life held a major driver position at 41.8 per cent of the premium generated during the period.

NAICOM maintained that operational confidence remained high in spite economic challenges in the financial system and the economy at large, as demonstrated by the relevant retention positions
in the sector.

It stressed that Life business retention for the period was 93 per cent while non-life recorded a ratio of 55 per cent as the industry average stood at about seventy-One (70.5 per cent) per cent.

It submitted that the retention in the non-life despite reporting an above average level, relative to its prior position (59.4 per cent) in the corresponding period of the preceding year, would require a focused attention for improvement as it declined by over four points representing eight per cent, year on year.

NAICOM said life insurance business recorded a near perfect point of 88.90 per cent claims settlement as against the reported claims
while non-life segment stood at 76.8 per cent.

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