BY NKECHI NAECHE-ESEZOBOR–Nigeria’s insurance industry records a significant surge in premium volume, reaching an impressive N1 trillion in 2023.
The Nigerian Insurers Association (NIA) shared this remarkable growth during its 53rd Annual General Meeting (AGM) held today in Lagos, through the Chairman Mr. Kunle Ahmed.
This figure marks a substantial 35% increase compared to the N736.2billion gross written premium recorded in 2022.
Ahmed noted that Nigerian insurance industry in 2023 saw significant developments and faced various challenges but was able to record total assets of N2.67trillion and capitalization of N851 billion in 2023.
He added that net claims posted by the industry stood at N669.4 billion with the non- life market contributing N329 billion, while life industry recorded a total of N340.4 billion.
He noted that despite the impressive results, insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty.
He said the association will continue to
support, collaborate and work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services sector to promote the business of insurance through the development of Innovative
products especially fo those financially excluded, enforcement of compulsory insurances towards
the growth and development of our industry.
Ahmed also noted that despite the increasing difficulty in coping with adequate premium payment in the largely dollar-based energy insurance market, the Energy and Allied pool of Nigeria continued to adjust its marketing and other strategies to achieve growth.
” This combined with the achievement of
reasonable profitability in the year, the pool has further improved Nigeria’s local content potential in energy insurance both in terms of
capacity and retention.”
He however urged the technical
management board to continue to build on the strong and firm foundation in increasing capacity and retention, we look forward to welcoming new members that are yet to subscribe to the pool.
” There is the need for full participation by
all companies in general insurance business to enable our industry achieve reduction in premium flight in oil and gas underwriting.
The meeting also featured ratification of appointment of Ahmed as the new chairman of the Association following the appointment of Mr. Segun Omoshein, by President Ahmad Tinubu as the Commissioner for insurance.
