“Nigerian Insurance Industry Flourishes in 2023 with Robust Market Performance”

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Mr Sunday Thomas, the Commissioner of Insurance

 

 

In 2023, the Nigerian insurance industry witnessed a period of significant growth and resilience, highlighted by various key indicators. During this time, the Life business sector retained an impressive 87.7% of premiums, showcasing its strength and stability. Conversely, the Non-Life segment lagged behind, retaining only 54% of premiums, leading to an aggregate market average retention of 66.7%.

 

 

 

Noteworthy was the remarkable expansion experienced by the non-life segment, driven primarily by the Oil & Gas and Fire Insurances, which contributed 27.3% and 24.1%, respectively, to the market’s overall growth.

 

 

 

The regulatory landscape played a crucial role in shaping the industry’s performance, particularly regarding claims settlement. Reflecting these measures, the Life business demonstrated a commendable 95% of net claims, significantly higher than the market average of approximately 71.4% of the N536.5 billion gross claims reported in the fourth quarter of 2023.

 

 

 

Furthermore, the implementation of the “no-premium no-cover” policy led to a decline in outstanding premiums by 1.6%, underscoring the industry’s commitment to financial prudence and risk management.

 

 

In terms of financial health, the industry reported robust figures, with total assets reaching about N2.67 trillion and capitalization standing at N851 billion in 2023. These numbers reflect a solid foundation for future growth and sustainability within the sector.

 

 

 

The Statistics Department of the National Insurance Commission (NAICOM) presented these findings, emphasizing the industry’s resilience and positive market performance throughout the year, as outlined in their Q4, 2023 report.


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