Insurance Industry Gross Premium Income Hit N369.2bn In Q2 2022

By LOVETH AZODO, Lagos

The Insurance industry has recorded a Gross Premium Income of about N369.2 billion in the second quarter of the year 2022, representing an increase of 20.1 percent when compared to the same period in the previous year.

The National Insurance Commission (NAICOM) made the disclosure in its bulletin titled ‘Insurance Market Second Quarter Performance 2022.’

According to the MAICOM, the market data reveals that the industry grew 20.1% higher than the national real Gross Domestic Product (GDP) of 3.5% during the same period.

The industry also recorded an impressive 65.0 per cent growth rate quarter on quarter. It added that the continued steady growth from the first quarter of the year correlates with the current performance of the period under review.

The bulletin further revealed that the Non-Life segment maintained its primacy at 59.3% of the total premium generated. Insights in the segment show Oil & Gas was the leading driver at 32.5% with a distant second at 20.7% for Fire.

Motor Insurance stood at 14.8% while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3%, 10.9% and 8.9% in this order.

Life business on the other hand recorded 40.6% of the insurance market production as its share contribution, gradually closes up.

The share of Annuity in the Life Insurance business logged at about Twenty-Five per cent (24.7%) while Individual Life held a major driver position at 41.8%.

Also Bulletin revealed that the industry recorded a total asset of about N2.3 trillion representing an increase of 11.9 per cent, quarter on quarter N2.3 trillion.

Non-Life business assets stood at N1.2 trillion while the Life business stood at about N1.1trillion.

On Claims, the data shows that the growth of the gross claims reported was (0.2%) during the quarter compared to the corresponding period of 2021.

The industry Statistics for gross claims in Q2 of 2022 stood at N174.8 billion, representing 47.3% per cent of all premiums generated during the period.

The Commission in its optimism stated that this occasion reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission. The net claims paid on the other hand stood at about N148.2billion, signifying an 84.8% of all gross claims reported during the period.

The Life Insurance business recorded a near perfect point of about ninety (88.90%) per cent claims settlement as against the reported claims while non-life segment stood at about seventy-seven (76.8%) per cent.