BY NKECHI NAECHE-ESEZOBOR–Following improved underwriting capacity, the Nigerian Insurance Industry has paid a total of N318.2billion as claims to policyholders as at the end of fourth quarter, ended December, 2022, representing 31.2% growth when compared to the same period of 2021.
This is contained in the bulletin for insurance industry performance for fourth quarter 2022 released by the Commission, that net claims during the fourth quarter stood at N244.3billion representing 18% per cent growth.
This the commission attributed to growing awareness and Market expansion as well as consumer’s confidence.
It added that non-life segment shows that Motor Insurance led with regards to claims
settlement vis a vis gross claims reported at about 92.3% per cent signifying a nine
points improvement as against its prior position.
While fire Insurance was the least at about 46.3%, the only class below average proportion, while 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.
Total assets of the Insurance industry was not left out as it grew to N2,328 trllion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of two 2.4% per cent, (QoQ) and at 4.4 per cent (YoY).
However, the outlook of the market growth in terms of assets remains positive, with the increasing measures of market deepening and development, recapitalization drive still ongoing, regulatory Insurance laws and provisions enshrined in the Insurance bill, being reviewed and, digitization of the supervisory wide processes would lead to the realization of the vast potentials in the insurance industry.
