By LOVETH AZODO, Lagos
The Insurance sector has shown business resilience and growth as the sector exceeded target of N1Trillion Gross Premium Written (GPW) achieving N1.003 trillion at the close of last quarter, 2023.
The record achieved, defied economic downtown and pressures posed by the inflationary trend and Naira exchange rate hiccups.
This is just as the performance statistics showed all time high total assets of about N2.
67trillion and capitalization of N851billion in 2023.
According to the fourth quarter market performance statistics released by the sector’s apex regulator, National Insurance Commission (NAICOM), the nation’s insurance industry “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 per cent growth compared to the N790billion recorded in 2022.”
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.
The market also recorded a retention of about 87.7percent for the Life business, just about 54 percent for Non-Life while the aggregate market average retention stood at 66.7 percent during the same period.
Further, the major growth drivers in the non-life segment of the market were oil and Gas and Fire Insurances, contributing 27.3% and 24.1% respectively.
In a direct reflection to the ongoing regulatory measures regarding claims settlement, the
Life business recorded about 95percent 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.
In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding
premium continue to decline, posting a 1.6 per cent as outstanding of all the premiums generated in the market during the period.
