Mr. O. S. Thomas
Commissioner for Insurance/CEO
National Insurance Commission (NAICOM)
The National Insurance Commission (NAICOM) has released the performance indices of the Nigerian insurance industry in the second quarter of 2022.
The insight states that in terms of market size, the sector recorded an increased rate of growth at about 12 percent (11.9%) quarter-on-quarter with a total asset of about N2.3 trillion, divided into N1.2 trillion in assets of Non-Life Business while the Life Business stood at about N1.1trillion.
The market also recorded about N369.2 billion during the period in term of Gross Premium Income (GPI), indicating a 20.1 per cent growth rate compared to the same period of the previous year and an impressive 65.0 percent, quarter-on-quarter. The continued steady growth from the first quarter of the year correlates with the current performance of the period under review.
The market data from NAICOM states that the industry grew by 20.1 percent higher than the national real Gross Domestic Product (GDP) of 3.5 percent during the same period under review, which indicates the industry’s impressive performance given the recent trajectory.
According to the data, the Non-Life segment maintained its primacy at 59.3 percent of the total premium generated. Insights in the segment shows that Oil & Gas was the leading driver at 32.5 percent with a distant second at 20.7 percent for Fire.
Motor Insurance stood at 14.8 percent while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3 percent, 10.9 percent and 8.9 percent in this order respectively. Life Business on the other hand recorded 40.6 percent of the insurance market production as its share contribution, gradually closes up.
The share of Annuity in the Life Insurance business logged at about 25 percent (24.7%) while Individual Life held a major driver position at 41.8 percent of the premium generated during the period.
In terms of Insurance Claims paid by underwriters, 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 percent per cent of all premiums generated during the period. 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 N148.2 billion, signifying an 84.8 percent of all gross claims reported during the period. The Life Insurance business recorded a near perfect point of about 90 (88.90%) percent claims settlement as against the reported claims while non-life segment stood at about 77 (76.8%) per cent.
The Insurance market indeed remained profitable during the period according to the Report, recording an overall industry average of about 57 percent (56.9%), maintaining a relative position (57.7%) recorded in the corresponding period of preceding year.
The Non-Life segment loss ratio stood at 43.6 percent while the Life Business stood at about 69 (68.5%) percent depicting a less profitable scenario comparatively, over the same period. The net loss ratios for Non-Life bears an improved market image in the current period as compared to the preceding period when it was 48.2 percent.
Drivers of the loss experience are made up of about (12) underwriters with a record of loss ratios above 100 percent.
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