Commissioner of Insurance/CEO, Sunday Thomas
The National Insurance Commission (NAICOM) on Friday released its bulletin of the insurance market performance statistics department synopsis of the insurance market second quarter, 2022 showed the performance analysis of the Insurance Industry is an insight into the market behaviour in the second quarter of 2022. According to NAICOM report, the market recorded about N369.2 Billion during the period, indicating a 20.1 per cent growth rate compared to the same period of the previous year and an impressive 65.0 per cent, quarter on quarter. The continued steady growth from the first quarter of the year correlates with the current performance of the period under review.
Gross Premium Income – Performance
The report disclose that insurance industry’s gross premium income in the second quarter of 2022 stood at N369.2.8billion, a notable performance as mapped in Table 1 which portrays the premium contribution by each class of the business.
The Commission in comparison analysis said market data reveals that the industry grew 20.1% higher than the national real Gross Domestic Product (GDP) of 3.5% during the same period. This indicates the industry’s impressive performance given the recent trajectory, the report added.
NAICOM stated that proportional participation of each class of business is provided for in Chart 1, suggesting the continued improvement of Life Insurance business as driven by its component of the Individual Life.
Apex regulator in the sector said the Non-Life segment as revealed in the figures, maintained its primacy at 59.3% of the total premium generated. Insights in the segment show Oil & Gas was the leading driver at 32.5% with a distant second at 20.7% for Fire, follow by Motor Insurance stood at 14.8% while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3%, 10.9% and 8.9% in this order.
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According to the report, “Life business on the other hand recorded 40.6% of the insurance market production as its share contribution, gradually closes up. The share of Annuity in the Life Insurance business logged at about Twenty-Five per cent (24.7%) while Individual Life held a major driver position at 41.8% of the premium generated during the period.”
The infographic representations of the non-life and life businesses are further illustratred by Charts 2 and 3 herein.
A descriptive insight into the Life business composition during the period is further represented by figure 3.
Total Assets in Millions of Naira – Q2, 2022:
Non-Life Insurance Business stood at 1,170.4
Life Insurance Business stood at 1,113.4
Industry Total stood at 2,283.8
Commission is hereby affirmed that the Statistics of the insurance market performance for second quarter 2022 revealed some quality improvements in the market indicators including growth, claims settlement and profitability. It is obvious that, the market could be adjudged as sound and stable whilst, the stance of the market deepening remains optimistic.