CEM REPORT, FINANCE | The National Insurance Commission (NAICOM) has reported a significant surge in the Nigerian insurance industry, revealing a total asset increase to N2.8 trillion as of the end of the third quarter in 2023.
The comprehensive overview, titled “Nigerian Insurance Market at a Glance – Q3, 2023,” illustrates a robust performance across various sectors.
The report by NAICOM shared compelling insights into the thriving landscape of the Nigerian insurance industry, showcasing an impressive uptick in total assets that soared to ₦2.8 trillion by the end of Q3 in 2023.
Breaking down these figures, it becomes evident that the non-life segment played a pivotal role, contributing ₦1.74 trillion to the overall industry market. Simultaneously, the life insurance sector exhibited notable strength, with total assets amounting to ₦1.07 trillion. This collective growth underscores the resilience and vibrancy of the Nigerian insurance market.
Paid Claims Insurance CompaniesÂ
Furthermore, NAICOM revealed that industry operators demonstrated their commitment to policy holders by disbursing a substantial ₦365.5 billion in claims by the end of the third quarter. This commitment to customer satisfaction is a testament to the industry’s dedication to providing reliable financial protection.
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During the same period, net claims experienced a significant rise, reaching ₦259 billion, while gross premium written stood impressively at ₦729.1 billion. These figures highlight the robust financial health of the insurance sector, showcasing a balance between claims settlement and premium generation.
Key DriversÂ
NAICOM’s analysis also shed light on the key drivers fueling this remarkable growth. Individual life insurance took the lead with a substantial 36.4 per cent increase, closely followed by group life at 34.5 per cent. Other notable contributors included the oil and gas sector with 28.9 per cent, fire insurance contributed 23.6 per cent, and motor insurance with 18.1 per cent.
This diverse range of growth drivers emphasizes the industry’s adaptability and responsiveness to varying market dynamics.
The Nigerian insurance industry’s outstanding performance in Q3 2023 not only signifies financial strength but also underscores its pivotal role in safeguarding the interests of policyholders. As the sector continues to evolve, these positive trends position it for sustained growth and further contributions to the nation’s economic landscape.
