As at the end of fourth quarter, 2022, insurance industry gross premium income rose to N726.2billion, as the sector grew its premium income compared to the preceding year.
This indicated about N110 billion premium growth compared to the N616.6 billion gross premium income recorded by the 2021 financial year end.
In an Insurance Market Q4, 2022 Bulletin released by the National Insurance Commission (NAICOM) yesterday, and made available to LEADERSHIP, the industry recorded a remarkable gross premium generation growth of approximately 36 per cent quarter on quarter (QoQ), even as the industry crossed a N700 billion mark of premiums generated for the first time in history.
The report also showed that Insurance claims rose to N318.2billion during the fourth quarter of 2022 representing a 31.2 per cent quarter-on-quarter growth, while the total assets of the insurance industry stood at N2.3 trillion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of 2.4 per cent, (QoQ) and at 4.4 per cent (YoY). This is relatively at a lower momentum compared to the prior period when the progression rate was recorded at about nine per cent (YoY), attributable to the wave of recapitalization drive recorded in that period.
The N726.2billion premium generated, represented a growth proportion of about 36.3 per cent, quarter on quarter and indeed, 17.8 per cent year on year (YoY). This, according to NAICOM, is a remarkable situation compared to the real growth (3.5 per cent) of Gross Domestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission.
While Non-Life business as in the prior periods, continued its dominance, contributing 57.4 per cent premium relative to the share of the Life business of 42.6%, keeping about same position in prior period, the proportional significance of Life in the industry sustained a positive course in recent times reflective of the consumer’s confidence and awareness.
In-depth analysis of the non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25 per cent, increasing by two point (2.4 per cent) compared to the previous quarter.
The figure posted by Fire Insurance came a distant second (22.2 per cent), maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9 per cent), Marine & Aviation (12.2 per cent), even as General Accident (11.1 per cent) and Miscellaneous (9.5 per cent) followed in that order.
On the other hand, Life business was driven by Individual Life portfolio (38.6 per cent) even as its relative contribution fell by about (2.6 per cent) compared to third quarter (41.6 per cent). In a contrasting path to the previous quarter, group life followed by 34.5 per cent while Annuity business contributed gross premium income of about 26.9 per cent during the period.
Meanwhile Insurance claims reported during the fourth quarter stood at N318.2billion representing a 31.2 per cent QoQ growth, a development attributed to growing awareness and market expansion as well as consumer’s confidence.
In a similar pattern, the net claims paid were reported at N244.3billion, growing at 17.9 per cent QoQ during the same period.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at 92.3 per cent signifying a nine points improvement as against its prior position. Fire Insurance was the least with 46.3 per cent, the only class below average proportion.
All other portfolios of General Accident Insurance (80.7 per cent), Oil & Gas (51.6 per cent), Marine & Aviation (74.4 per cent), miscellaneous Insurances (86.1 per cent) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business, on the other hand, reported two points less in comparison to the position held in the prior period of 94.6 per cent) of net claims paid compared to total claims reported during the same period of 2021.
NAICOM, in this report, further disclosed that, total assets of the Insurance industry stood at N2,328billion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of 2.4 per cent (QoQ) and at 4.4 per cent (YoY).
This, it said, is relatively at a lower momentum compared to the prior period when the progression rate was recorded at about nine per cent (YoY), attributable to the wave of recapitalisation drive recorded in that period.
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