……….  Attributes Major Drivers To Oil, Gas, Fire Insurances

Amaka Obiefuna

It was an impressive growth record for the Nigeria Insurance sector as it achieved N1.003 trillion at the close of last quarter, 2023, exceeding the target of N1 trillion Gross Premium Written (GPW).

The figure contained in a document entitled: Market Performance at a Glance -Q4, 2023, released by the National Insurance Commission (NAICOM) translates to about 27 per cent growth compared to the N790 Billion recorded in 2022.

Also the performance statistics showed all-time high total assets of about N2.67trillion and capitalisation of N851 billion in 2023.

 “The industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter, recording a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022,” the document revealed.

A breakdown of the statistics showed that the Non-Life business accounted for 61.3 per cent of all premiums written during the year while the Life segment contributed 38.7 per cent, valued at N388.1billion.

It also reflected retention of about 87.7per cent for the Life business, just about 54 per cent for Non-Life while the aggregate market average retention was 66.7 per cent during the same period of the year.

According to NAICOM, major growth drivers in the non-life segment of the market were Oil & Gas and Fire Insurances that contributed 27.3 per cent and 24.1 per cent respectively.

“In a direct reflection to the ongoing regulatory measures regarding claims settlement, the Life business recorded about 95 per cent of net claims to the total recorded claims during the year while the market average stood at about 71.4 per cent of the N536.5 billion gross claims reported at the close of fourth quarter, 2023,” it said.

“In a direct reflection to the ‘no-premium no-cover’ policy of the Commission, the outstanding premium continues to decline, posting a 1.6 per cent as outstanding of all the premiums generated in the market during the period,” it stated further.