The Insurance Sector at the close of business year Q4 2023 met its tall dream of hitting the trillion naira premium income mark as the industry announced a total premium of N1.003 trillion in the last quarter of the year 2023.
The sector regulator, the National Insurance Commission (NAICOM), announced this Tuesday in a statement made available to the media.
The commission in the statement titled Market Performance At A Glance-Q4 -2023 released by the Statistics Department Directorate of Research, Statistics and Publications said: “The Insurance industry of Nigeria has sustained its progressive trend of positive market performance at the close of 2023 fourth quarter, recording a milestone growth to close at N1.003trillion, representing about 27% growth compared to the N790 billion recorded in 2022.
The commission gave a breakdown of how the premium was generated saying the Non-Life business accounted for 61.3% of all premiums written during the year while the Life segment contributed 38.7%, valued at N388.1 billion.
The statement further said the market also recorded a retention of about 87.7% for the Life business, just about 54% for Non-Life while the aggregate market average retention stood at 66.7% during the same period.
According to NAICOM, major growth drivers in the non-life segment of the market were Oil & Gas and Fire Insurances, which contributed 27.3% and 24.1% respectively. Motor insurance contributed N114.8billion, General Accident generated N59.1 billion , marine N69.1 billion .
Net motor insurance premium stood at N100.3 billion, fire N75.3 billion, General Accident 39.0 billion marine 33.5 while oil and gas stood at N54.6 billion .
In terms of market performance, motor insurance polled 66.5%, fire polled 46.9%, General Accident 6.7%, marine 30.9% oil and gas 25.5% .
Talking in terms of claims settlement for the period, the commission said, “direct reflection to the ongoing regulatory measures regarding claims settlement, the life business recorded about 95% of net claims to the total recorded claims during the year while the market average stood at about 71.4% of the N536.5 billion gross claims reported at the close of fourth quarter, 2023”.
The commission further noted that in a direct reflection to its “no-premium no-cover” policy, the outstanding premium has continued to decline, as the industry posted just 1.6% outstanding of all the premiums generated in the market during the period.
It further said within the period under review, total assets of the sector stood at about N2.67 trillion while capitalisation stood at N851 billion in 2023.
Giving a breakdown of claims payment by various classes, the commission said motor insurance class paid gross claims of N32.1 billion and net claims of N31.0 billion, fire insurance class paid gross claims of N61.5 billion and net claims of N41.3 billion, General Accident paid gross claims of N22.3 billion and net claims of 17.0 billion, marine class had a gross claims of N16.9 billion and net claims of 12.0 billion while oil and Gas class had gross claims of N157.1 billion and net of N54.6 billion.
In terms of market size and market capitalisation, NAICOM said non-life had N1.669 billion assets, life had N1.00 billion bringing the market aggregate to N2.673 billion.
Market capitalisation, non life has N670.2 billion, life has N180.9 billion, bringing the aggregate to N851.0 billion.
In terms of outstanding premium, for non life, outstanding premium stood at just 2.5% of the total premium, life 0.2% bringing the aggregate of outstanding premium for the industry in the period under review to 1.6%.
