Insurance Industry Effects N259 Billion Claims Payment As Gross Premium Written Hits N729.1 Billion In Q3 2023

By LOVETH AZODO, Lagos

Nigerian insurance industry has achieved total net claims payment amounting to N259bn in Q3 2023, reflecting a 24.9% increase from the N207bn paid during the same period of previous year.

Meanwhile, the total gross claims for the industry reached N365.5bn, and its Gross Premium Written (GPW) surged to N729.1bn, approaching the N1 trillion target set for the year.

According to a document titled ‘Nigeria Insurance Market At A Glance – Q3, 2023,’ released by the National Insurance Commission, the key drivers of this growth in non-life businesses include the oil and gas, fire, and motor insurance sectors. For life businesses, individual and group life policies played significant roles.

Specifically, in non-life business, the oil and gas sector contributed 28.9%, fire business 23.6%, and motor insurance 18.1% to the total GPW during the review period. In life business, individual life policies made up 36.4%, while group life policies accounted for 34.5%.

The document also revealed that the ratio of total claims to total premium was 50.1%, the ratio of claims paid to claims reported in the industry was 70.9%, for non-life business, the ratio of claims paid to claims reported was 55.0%, and for life business, it stood at 94.9%.

The insurance industry reported a total size of N2.8 trillion, with a breakdown showing total assets of N1.74 trillion for non-life and N1.0 trillion for life.