Sunday Thomas, NAICOM Boss
BY NKECHI NAECHE-ESEZOBOR—The Nigerian industry industry paid a total of N174.8 billion as claims to policyholders in second quarter of 2022.
According to statistics released by the National Insurance Commission ( NAICOM), industry gross claims in Q2 of 2022 stood at N174.8 billion, representing 47.3% per cent of all premiums generated during the period.
The growth of the gross claims reported, according to the commission was (0.2%) during the quarter compared to the corresponding period of 2021.
The development the commission said reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission.
Giving details of the claims paid the commission said that net claims paid on the other hand stood at about N148.2billion, signifying an 84.8% of all gross claims reported during the period.
It noted that Life Insurance business recorded a near perfect point of about ninety 88.90% per cent claims settlement as against the reported claims while non-life segment stood at about seventy-seven 76.8% per cent.
It added that the percentage of incurred claims as against reported mirror the market retention view during the period. Motor Insurance retained its lead posting a claims settlement ratio of ninety-two per cent.
It however said that progress was however more noticeable in the Oil & Gas with an above eighty-five (85.7%) per cent of claims settlement ratio, an increase of some forty- three points compared to its position of 42.8% recorded in the corresponding period of 2021.
The statement further said that Miscellaneous insurance also posted about sixty two (61.9%) per cent, higher than forty four percent paid claims ratio, compared to its corresponding period of 2021. while General Accident (75%), Fire (76.2%) and, Aviation & Marine (61.9%) followed in that order.
Meanwhile, the industry gross premium income moved to N369.28 billion in the second quarter of 2022.
Breakdown of life business was largely driven by Individual Life which held 41.8 percent of the premium generated during the period, while annuity was about 24.7 percent.
The breakdown shows that non-!life business maintained its primacy at 59.3% of the total premium generated, while Life business recorded 40.6 percent of the insurance market production.
In the other hand Non-life business was large driven by Oil & Gas at 32.5 percent, fire 20.7 percent. Motor Insurance 14.8 percent, while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3 percent, 10.9 percent and 8.9 percent, respectively.
