Nigeria’s National Insurance Commission (NAICOM) has announced a significant milestone for the insurance industry, with a remarkable growth of N1.003 trillion in net premiums by the end of the fourth quarter of 2023.
According to the market performance report published by the Commission’s statistics department, this surge reflects a remarkable 27% increase compared to the N790 billion recorded in 2022.
The report highlights that the insurance market amassed total assets worth approximately N2.67 trillion, with a capitalization of N851 billion during the review period.
Furthermore, it outlines that Non-Life business constituted 61.3% of all premiums, while the Life segment contributed 38.7%, valued at N368 billion.
In terms of retention rates, the Life business boasted an impressive 87.7%, while Non-Life retention stood at approximately 54%, with an aggregate market average retention of 66.7% during the same period.
Key growth drivers in the non-life segment included oil and gas as well as fire insurance, contributing 27.3% and 24.1%, respectively, to the overall premiums. This resilience shows the industry’s strength amid economic uncertainties and volatility.
Additionally, the report reveals the industry’s dedication to regulatory compliance and claims settlement, with an impressive 95% of net claims settled in the Life business sector. The market average for claims settlement reached about 71.4% of the N536.5 billion in gross claims reported by the end of the fourth quarter in 2023.
Moreover, under the regulatory measure of the “no-premium no-cover” policy enforced by the Commission, a decline in outstanding premiums was recorded, indicating a 1.6% decrease.