“Nigeria’s Insurance Sector Soars: Hits N1.003 Trillion Milestone, Non-Life Segment Leads Growth”

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The latest report published by the National Insurance Commission (NAICOM) paints a picture of resounding success for Nigeria’s insurance industry, as it maintained its upward trajectory and achieved significant milestones by the close of the fourth quarter of 2023. According to the report from the Statistics Department of the Directorate of Research, Statistics & Publications, the industry witnessed remarkable growth, reaching a monumental figure of N1.003 trillion in total premiums, marking a substantial 27 percent increase from the N790 billion recorded in 2022.




Breaking down the figures, the report highlights the dominance of the Non-Life business, which accounted for an impressive 61.3 percent of all premiums written during the year. Meanwhile, the Life segment contributed 38.7 percent, amounting to a substantial N388.1 billion. This balanced growth across both segments underscores the industry’s resilience and adaptability to evolving market dynamics.




A key highlight of the report is the remarkable retention rates observed within the industry. The Life business recorded an impressive retention rate of about 87.7 percent, reflecting the confidence of insurers in retaining policyholders. Similarly, the Non-Life segment exhibited a retention rate of approximately 54 percent, with the aggregate market average retention standing at a commendable 66.7 percent during the same period.



The report also sheds light on the major growth drivers in the non-life segment, with Oil & Gas and Fire insurances emerging as frontrunners, contributing 27.3 percent and 24.1 percent, respectively, to the overall premiums. These sectors played a pivotal role in propelling the industry forward, demonstrating resilience and robust performance in the face of challenges.




Moreover, the report highlights the industry’s commitment to regulatory compliance and claims settlement. The Life business recorded an impressive 95 percent of net claims to the total recorded claims during the year, reflecting a dedication to meeting policy obligations promptly. Meanwhile, the market average for claims settlement stood at about 71.4 percent of the N536.5 billion gross claims reported at the close of the fourth quarter, 2023.




The report also underscores the effectiveness of regulatory measures such as the “no-premium no-cover” policy implemented by the Commission, which contributed to a decline in outstanding premiums, posting a 1.6 percent decrease. This policy reinforced financial discipline within the industry, ensuring that insurers maintained adequate coverage for policyholders.




In terms of financial health, the report reveals impressive figures, with the market recording total assets of approximately N2.67 trillion and a capitalization of N851 billion in 2023. These statistics reflect a solid foundation for future growth and stability within Nigeria’s insurance sector.




Overall, the report signifies a period of unprecedented growth and resilience for Nigeria’s insurance industry, underscoring its vital role in driving economic development, promoting financial stability, and safeguarding the interests of policyholders across the nation.

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