By LOVETH AZODO, Lagos
The Nigerian insurance industry in 2024 unfolded as a dynamic and transformative landscape, marked by significant leadership transitions, financial milestones, and relentless efforts to deepen market penetration.
As stakeholders reflect on the year, it is evident that the sector is on a progressive trajectory, driven by innovation, regulatory reforms, and a shared commitment to growth.
Leadership Transitions Reshaping the Sector
One of the most notable developments in 2024 was the appointment of Olusegun Ayo Omosehin as the Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM) in May.
Omosehin succeeded Sunday Thomas, who had steered NAICOM with a focus on strengthening governance and solvency standards.
Reflecting on his vision, Omosehin stated, “We are determined to leverage technology and strategic reforms to build a robust and inclusive insurance market that serves all Nigerians.”
At the Nigeria Insurers Association (NIA), Kunle Ahmed assumed the role of Chairman, succeeding Olusegun Ayo Omosehin, whose tenure from 2022 to 2024 was marked by notable achievements.
Ahmed’s agenda emphasizes collaboration, technology adoption, and market expansion. “Our goal is to foster unity among insurers and address critical challenges, including public trust and product awareness,” Ahmed remarked during his inaugural address.
Meanwhile, the Chartered Insurance Institute of Nigeria (CIIN) witnessed a leadership change in September when Yetunde Ilori took over as President, succeeding Edwin Igbiti (2022–2024).
Ilori’s presidency is focused on enhancing professionalism and capacity building. “We must continue to empower our members with the skills and knowledge to navigate the evolving insurance landscape,” she emphasized.
At the Nigerian Council of Registered Insurance Brokers (NCRIB), Prince Babatunde Oguntade, FIIN, FCIB, continued to lead with a renewed focus on ethics and innovation. Oguntade stated, “Digitalization is no longer optional; it is the cornerstone of an efficient and customer-centric insurance industry.”
Financial Performance: Breaking Barriers
The industry’s financial performance in 2024 has been remarkable. The fourth quarter of 2023 set the tone with a record Gross Premium Written (GPW) of N1,003.2 trillion. This milestone, attributed to regulatory consistency and market deepening efforts by NAICOM, underscores the sector’s resilience.
Non-life insurance retained its dominance, contributing 61.3% to the total premium, while Life Insurance accounted for 38.7%. Within the non-life segment, the Oil & Gas portfolio led with a 27.3% share, followed by Fire Insurance (23.1%), Motor Insurance (18.7%), and Marine & Aviation (11.2%). General Accident and Miscellaneous Insurance contributed 9.6% and 9.2%, respectively. On the life side, Individual Life accounted for 41.5% of the premiums, Group Life 34.5%, and Annuity business continued its steady growth at 30.4%.
In the second quarter of 2024, the insurance market achieved a Gross Premium Written of N813.1 billion. Non-life insurance contributed 69.1% of the total premium, a significant increase from 63% in the previous quarter, while Life Insurance accounted for 31.9% of the premiums.
Claims Settlement: Building Trust
The industry’s gross claims reported in the fourth quarter of 2023 totaled N536.5 billion, marking a 54% growth compared to the prior year. Net claims paid stood at N382.9 billion, representing 71.4% of all reported claims. The Life Insurance segment excelled with a near-perfect claims settlement rate of 95%.
Similarly, in the second quarter of 2024, gross claims reported amounted to N297.9 billion, while net claims paid reached N259.4 billion, translating to an 87.1% settlement rate. Life Insurance maintained a 92.5% claims settlement rate, while the non-life segment achieved 83%.
The National Insurance Commission has given insurance companies a December 31, 2024, deadline to clear all outstanding claims.
The Head of the Communication & Stakeholders Management Sub-committee and Managing Director of Rex Insurance Limited, Mrs. Ebelechukwu Nwachukwu, said this at a press conference held after the insurers’ committee meeting.
According to her, the Commissioner for Insurance/Chief Executive Officer of NAICOM, Olusegun Omosehin, had charged insurance executives at the event to ensure no outstanding claims were captured in their 2024 financial accounts.
Digitalization: A Game-Changer
Digital transformation has been a recurring theme across the sector. Kunle Ahmed highlighted its importance, stating, “Embracing technology is the only way to remain competitive and relevant in today’s market.”
Similarly, Yetunde Ilori emphasized digitalization as a cornerstone of her tenure, saying, “The future of insurance lies in leveraging digital tools to enhance customer experience and streamline operations.”
Prince Babatunde Oguntade echoed this sentiment, noting that “digitalization is revolutionizing how brokers interact with clients, making insurance more accessible and transparent.”
Regulatory Landscape
NAICOM has continued to play a critical role as the sector’s regulator, emphasizing compliance and innovation. The Commission’s Insurance Sandbox Framework, launched in 2024, provides a controlled environment for testing new products and services.
This initiative aims to bridge the gap between insurers and underserved segments of the population.
In a significant regulatory intervention, NAICOM took over the Board and Management of African Alliance Insurance Plc on October 30, 2024. This action followed years of insolvency and failure to meet the obligations of annuitants and policyholders. NAICOM’s decisive move underscores its commitment to protecting policyholders and maintaining sector stability.
On November 22, 2024, NAICOM also signed a Memorandum of Understanding (MoU) with the Nigerian Data Protection Commission (NDPC) to enhance data protection within the insurance sector.
The partnership, which was formalized during a ceremony attended by key stakeholders, aims to address longstanding challenges related to data availability and security in the industry.
Speaking at the event, NAICOM emphasized the critical role of robust data protection measures in building trust and improving operational efficiency.
NAICOM further achieved a major milestone with the passage of the Insurance Bill through its second reading in the Senate.
This bill seeks to reform and regulate policies within the insurance sector, a move that received overwhelming support during plenary when Deputy Senate President, Barau Jibrin, put it to a vote. The development marks a step forward in enhancing the legislative framework guiding the industry.
Additionally, the Insurance Industry Consultative Committee reconstituted its sub-committees to align with the pillars of the 10-year roadmap for the sector.
The sub-committees include Insurance Sector Stability, Communication & Stakeholders Management, Technology & Talent Management, and Customer Service & Market Expansion. This restructuring reflects the industry’s focus on sustainable growth and customer-centric strategies.
Meanwhile, a high-level stakeholders meeting of the Insurance and Aviation sectors was convened on Wednesday at the Transcorp Hilton Hotel in Abuja. The meeting underscored the collaborative efforts to address sector-specific challenges and drive mutual progress.
NAICOM also reported that as of October 28, 2024, 44 of Nigeria’s 67 licensed insurance companies had their 2023 financial statements approved. These companies include Stanbic IBTC Insurance Company, NEM Insurance Plc, Zenith General Insurance Limited, Consolidated Hallmark Insurance Limited, Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Sunu Assurances Nigeria Plc, AXA Mansard Insurance Plc.
AIICO Insurance Plc, Veritas Kapital Assurance Plc, Sovereign Trust Insurance Plc, Linkage Assurance Plc, International Energy Insurance Plc, Prestige Assurance Plc, Guinea Insurance Plc, Coronation Insurance Plc, Coronation Life Assurance Ltd, FBS Reinsurance Company Ltd, Cornerstone Insurance Plc, Fin Insurance Company Ltd, Salam Takaful Insurance Limited, Jaiz Takaful Insurance Limited, Tangerine General Insurance Limited, Tangerine Life Insurance Company Ltd, Leadway Assurance Limited, Universal Insurance Plc, Continental Reinsurance Limited.
Old Mutual Life Assurance Nigeria Limited, Old Mutual General Insurance Company Nigeria Limited, NSIA Insurance Company Limited, Anchor Insurance Company Limited, Noor Takaful Insurance Company Limited, Sterling Assurance Plc, Sanlam Life Insurance Limited, Rex Insurance Limited, Unitrust Insurance Company Limited, Sanlam General Insurance Limited, Heirs General Insurance Limited, KBL Insurance Company Limited, Allianz Nigeria Insurance Company Limited, Regency Alliance Insurance Plc, Capital Express Assurance Ltd, Lasaco Assurance Plc, and Heirs Life Assurance Ltd.
Looking Ahead
As the industry looks to 2025, the achievements of 2024 provide a solid foundation for further growth. Stakeholders agree that collaboration, innovation, and regulatory alignment will be key drivers.
As Olusegun Ayo Omosehin aptly summarized, “The Nigerian insurance industry is on the cusp of a transformation that will redefine its role in economic development. The journey ahead is promising, but it requires collective effort to unlock its full potential.”
With strategic leadership, financial resilience, and a focus on digitalization, the Nigerian insurance sector is poised for a brighter and more inclusive future.
