BY NKECHI NAECHE-ESEZOBOR— The Nigerian insurance industry said it paid a
total of N149.1billion to policyholders at the end of first quarter 2024 ( Q1), BusinessTodayNG has learnt.
This is contained in the data released by the commission on its official website, that claims grew by 71.8 percent to N149.1billion when compared to N86.8 billion reported in the same period of 2023.
It added that the claims is about thirty-two (31.7%) per cent of all the premiums generated during the period.
The commission attributed the high claims payment by the industry to increased public enlightenment and growing confidence of stakeholders.
According to the commission this is win-win situation for insurers, policyholders and society at large as stakeholder confidence remains a major determinant of market deepening and sustainability in the long run.
The net claims paid stood at N132.7billion, signifying 89.1% of gross claims reported during the period with the Life segment of the market polling an almost perfect point of 92.7%.
The proportion of net claims settlement against reported claims in the non-life corner of the market was also impressive with a record of 85.9per centering mostly to issues regarding incomplete documentation of claims reports.
On gross premium income, N470.7 billion was reported at the end of Q1 2024 which the commission attributed to the regulatory measures and market dynamics.
The non-life segment, generating a gross written premium of N326.9 billion, led the market, contributing 69.5% of the total premium pool as the Life segment made up 30.5% of the total premiums during this period.
Non-Life business indicates that Oil & Gas portfolio held a share of about forty(40.4%) per cent as a lead driver of growth during the quarter, relative to its record of 32.6% reported in the first quarter of 2023.
This is followed by the Fire Insurance contributing 19.1% of all non-Life premiums generated during the period under
review.
Motor Insurance constituted 14.9% of the segment while Marine & Aviation, General
Accident and, Miscellaneous Insurance reported market shares of 10.0%, 9.7%, and 5.9% respectively.
Also, total assets grew by 36.9 per cent year-on-year, YoY, to N3.3 trillion in Q1’24 from N2.4 trillion when compared with what was reported in same period of Q1 2023.
The breakdown shows that total assets of non-life business stood at N1.9 trillion while total assets of life business stood at N1.4 trillion.
The commission noted that the insurance industry was able to achieve due to sustained positive performance and market deepening capacity indicating its ability to adapt and grow despite the prevailing macroeconomic challenges.
