The National Insurance Commission (NAICOM) disclosed this in the report contained the Insurance Market Performance Bulletin extract from Statistics Department Quarterly Synopsis of The Insurance Market Third Quarter, 2022
The report stated that the Nigerian Insurance industry in the third quarter of 2022 as captured by Commission’s report, was a virtue of an excellent performance in the financial services sector of the economy. The breakdown showed that the industry recorded a total Asset of about N2,274billion (N2.3 trillion), indicating a 9.0 per cent increase, YoY, while the industry balance sheet revealed about N1.1 trillion in Assets of Non-Life business leaving the Life business stood at about N1.2trillion.
“The market concentration as shaped by competition and other factors in the industry revealed a rather similar scenario compared to the second quarter of 2022, indicating that the market control setting has not significantly changed in the last three months.
In the Life business segment, the report cited that the least three companies recorded a proportional contribution of about 0.1%, same Composite Non-Life Life Reinsurance position compared to prior quarter while the top three Insurers contributed 49.3% of all premiums generated during the period, just about four points increase compared to 45.4% recorded in the previous period.
Similarly, “the non-life business had a record of 0.2% of its market share contributed by the least three of the underwriters, same as in the prior period of second quarter of the year while about 31% of the non-life gross premium was contributed by its top three Insurers, up from about 27% it recorded in the previous quarter.
Comparatively, it pointed out that the top ten (10) underwriters in the Non-Life section of the industry underwrote about sixty-four (64.2%) per cent of the gross premiums income portraying an increased concentration risk from its position of 60.8% recorded in the prior period. Nonetheless, at the least bottom of the market, are institutions under regulatory watch or facing various operational challenges as revealed over time. In the overall analysis, the market maintained a fairly balanced concentration especially in the Non-Life section of the industry.
From the ongoing, the commission noted that the market Statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth, retention, claims management experience and profitability, at levels of which the industry could be ruled as profitable, sound and stable.
In cognisance also to the on-going digitisation and market deepening measures of the Commission, the outlook remains strongly positive, it added
The apex regulator of the sub sector of the economy noted that the insurance market indeed remained profitable during the period, recording an overall industry average of about fifty-five (54.5%) per cent, a noteworthy performance though lesser, compared to 46.7% recorded in the corresponding period of preceding year. According to the report released recently disclosed that the Non-Life segment stood at 43.5% better than in the Life business which reported a net loss ratio of sixty four (63.6%) per cent during the period.
“The sustained lower net loss ratios of the non-life which is relatively a short-term business, is good for the market as it could quickly register some good market image and confidence in the industry.
Nonetheless, the report added that despite a rather good scenario of the market average, some three Insurers gave rise to the reported net loss ratio of the period under review.