…….. Shows Resilience Amidst Growth and Regulatory Measures
Throughout the 2023 fiscal year, the Nigerian insurance industry demonstrated remarkable resilience and positive market performance, according to the latest findings presented by the Statistics Department of the National Insurance Commission (NAICOM).
Key highlights from the period include the retention rates of the Life and Non-Life segments, with the Life business retaining about 87.7% of premiums and the Non-Life segment lagging behind at 54%, resulting in an aggregate market average retention of 66.7%.
Notably, the Non-Life segment experienced significant growth, attributed to Oil & Gas and Fire Insurances, which contributed 27.3% and 24.1%, respectively. This growth underscores the industry’s ability to adapt and thrive in dynamic market conditions.
Reflecting regulatory measures on claims settlement, the Life business recorded an impressive 95% of net claims, while the market average stood at approximately 71.4% of the N536.5 billion gross claims reported in the fourth quarter of 2023. The implementation of the “no-premium no-cover” policy further contributed to a decline in outstanding premiums by 1.6% compared to the total premiums generated during the period.
Furthermore, the industry reported robust financial standing, with total assets reaching about N2.67 trillion and capitalization amounting to N851 billion in 2023. These figures underscore the industry’s growth trajectory and financial stability, positioning it as a key player in Nigeria’s economic landscape.
The Statistics Department of NAICOM emphasized these findings, highlighting the industry’s resilience and positive market performance throughout the year. As the Directorate of Research, Statistics & Publications, NAICOM remains committed to providing comprehensive insights into the Nigerian insurance sector, guiding stakeholders and policymakers towards informed decision-making.
Overall, the Nigerian insurance industry’s ability to navigate challenges, embrace regulatory measures, and maintain financial stability underscores its importance as a pillar of the country’s financial sector and its role in driving economic growth and resilience.
