NAICOM Records Premium Retention Capacity Of 71.3% in Q4, 2022.

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Sunday Thomas, Nigeria Commissioner Of Insurance (CFI)

The National Insurance Commission (NAICOM) has reported growth in the Insurance industry premium average retention, according to the bulletin of the insurance market statistics performance released by the apex regulator in the industry for the fourth quarter of 2022.

 

 

The Commission disclosed that it recorded operational challenge posed in domestic and global economies, nevertheless, the industry continues to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity.

 

 

In the period under review, NAICOM said industry wide average retention ratio stood at about seventy-one per cent (71.3%), although, slightly a point lower than it held in the previous quarter and four points lower in comparison to same period Year On Year (YoY).

 

 

Industry regulator revealed that persistently, the Life business retained about the same point of ninety-three (93.3%) from its prior position of 93.8% in quarter three. According to the Commission, the Non-Life segment which also took a similar pattern, Motor Insurance continued its lead as the highest retaining portfolio with a retention ratio of about ninety-four per cent (93.5%) also a point higher than its standing in the prior quarter.

 

The report further noted that Oil & Gas recorded the least at about thirty-six per cent (35.9%) adding that the oil and Gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.

 

 

Consequently, Commission reiterated that the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall Non-Life business ratio of fifty-five per cent (55.0%), slipping from about fifty-seven per cent (56.6%) held in the prior period.

 

NAICOM said that it provides the relative retention of various classes vis a vis the total premiums generated by the non-life business during the fourth quarter.

 

“Insurance premium retention of the market remains robust, above average and healthy except in the Oil & Gas business, as shown in Table 2 for the Non-Life part of the industry. The same is also true for the Life Insurance business during the period under review, it reports concluded.


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