The nation’s insurance industry recorded a gross premium income of N726. 2 billion in the fourth quarter of 2022.
The National Insurance Commission (NICOM) disclosed this in its bulletin, yesterday.
According to the organisation, the gross premium income generated in the quarter under review represented a 36.3%, quarter- on- quarter and 17.8% year-on-year.
“This is a remarkable situation compared
to the real growth (3.5%) of Gross Gomestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission,” NICOM said.
The contribution of the gross premium income by each class of business for the period under review showed that Non-Life business as in the prior periods, continued its dominance, contributing 57.4% per cent relative to the share of the Life business which was 42.6%.
NICOM.maintained, “The proportional significance of Life in the industry sustained a positive course in recent times was reflective of the consumer’s confidence and awareness.”
In-depth analysis of the Non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25%, increasing by two point (2.4%) compared to the previous
quarter.
The figure posted by Fire Insurance came a distant second (22.2%) maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9%).
Marine & Aviation (12.2%), General Accident (11.1%) and Miscellaneous (9.5%) followed in that order.
On the other hand, Life business was driven by Individual Life portfolio (38.6%) even as its relative contribution fell by about (2.6%) compared to third quarter (41.6%). In a contrasting path to the previous quarter, group life followed by about thirty-five (34.5%) per cent while
Annuity business contributed gross premium income of about twenty-seven (26.9%) per cent during the period.
Pays N318 b claims
The Insurance Claims reported during the fourth quarter of last year stood at N318.2 billion, representing a 31.2% per QoQ growth.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3%), signifying a nine
points improvement as against its prior position.
NICOM said that Fire Insurance was the least at about 46.3%. All other portfolios of General Accident Insurance (80.7%), Oil & Gas (51.6%), Marine & Aviation (74.4%), miscellaneous Insurances (86.1%) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business on the other hand reported two points less in comparison to
the position held in the prior period of ninety-five (94.6%) per cent of net claims paid compared to total claims reported during the same period of 2021.
Source: Vanguard
