Insurance Industry Premium Income Rises To N1.5trn As Policyholders Claim N622bn

The gross written premium(GWP) of the nation’s insurance industry rose significantly to N1.56 trillion in the 2024 financial year, jumping by 56 per cent from N1.003 trillion posted in 2023 financial year end.
This is even as policyholders who suffered losses on insured assets and lives claimed N622 billion compensation from underwriting firms in the country. The money paid as claims translated to about 40 per cent of the total premium income generated in 2024.

Speaking at the 54th annual general meeting (AGM) of the Nigerian Insurers Association (NIA) in Victoria Island, Lagos, yesterday, its chairman, Kunle Ahmed, noted that, of the N1.56 trillion premium posted in the last financial year, non-life business accounted for N1.1 trillion, while life business recorded N470 billion.
Similarly, on the N622 billion paid as claims, he said, the non-life segment accounted for N437 billion even as the life segment paid N185 billion claims.

Stating that the industry’s total assets leaped significantly to N3.9 trillion, representing a 46.1 per cent increase from N2.67 trillion in 2023, he added that market capitalisation also grew substantially, hitting N1.2 trillion, a 41 per cent increase from N850 billion in 2022.

While non-life sector, fire, oil and gas insurance lines were key drivers of revenue growth, with all non-life products demonstrating strong quarter-on-quarter increases, he noted that, the life insurance segment also saw substantial growth with group life insurance emerging as the largest premium generator.
He,however, said, despite this growth, insurance penetration remains low, with efforts to improve penetration tied to addressing the enforcement of compulsory insurance policies, improvement in claims payment process and the consolidation of the insurance enabling laws.

The National Insurance Commission (NAICOM), he stressed, continued to enforce governance, risk, and compliance measures, ensuring adherence to industry standards, such as; stricter solvency and reserve requirements for insurers, enhanced consumer protection policies to boost trust in the sector, and encouragement of digital transformation to improve accessibility and efficiency.

“The Association remains committed to supporting, collaborating, and working closely with the National Insurance Commission (NAICOM) and other key stakeholders in the financial services sector. Our focus is on advancing the insurance industry by developing innovative products tailored to the needs of the financially excluded individuals and enforcing compulsory insurance policies to drive industry
growth and development,” he pointed out.