The Insurance Industry in Nigeria recorded about N369.2 Billion in the second quarter of 2022, indicating a 20.1 percent growth rate compared to the same period of the previous year and an impressive 65.0 percent, quarter on quarter.
This is contained in the bulletin of the insurance market performance released by the National Insurance Commission (NAICOM) which showed that the market continued a steady growth from the first quarter of the year.
According to the report the Non-Life segment maintained its primacy at 59.3% of the total premium generated, Oil & Gas was the leading driver at 32.5% with a distant second at 20.7% for Fire, Motor Insurance stood at 14.8% while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 12.3%, 10.9% and 8.9% in this order.
Life business on the other hand recorded 40.6% of the insurance market production as its share contribution, gradually closes up.
The share of Annuity in the Life Insurance business logged at about Twenty-Five percent (24.7%) while Individual Life held a major driver position at 41.8% of the premium generated during the period.
The report revealed that: “Operational confidence remained high in spite of economic challenges in the financial system and the economy at large, as demonstrated by the relevant retention positions in the sector.
“The Life business retention for the period was 93% while non-life recorded a ratio of 55% as the industry average stood at about seventy-One (70.5%) per cent.
“The retention in the non-life despite reporting an above average level, relative to its prior position (59.4%) in the corresponding period of the preceding year, would require a focused attention for improvement as it declined by over four points representing eight per cent, year on year.”
However, performance by various classes in the non-life segment of the market shows that all classes stood at an above average position except for the Oil & Gas business which was held a retention of forty (40.1%) per cent.
That points a decline in the Oil & Gas retention capacity in the market compared to the same period in 2021 when it recorded about forty-Two (42.3%) per cent in retention proportion.’
The growth of the gross claims reported was (0.2%) during the quarter compared to the corresponding period of 2021. The industry Statistics for gross claims in Q2 of 2022 stood at N174.8 billion, representing 47.3% per cent of all premiums generated during the period.
This occasion reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission.
The net claims paid on the other hand stood at about N148.2billion, signifying an 84.8% of all gross claims reported during the period.
The 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%) percent.
Overall, the Statistics of the insurance market performance for second quarter 2022 revealed some quality improvements in the market indicators including growth, claims settlement and Profitability showing a sound and stable market whilst, the stance of the market deepening remains optimistic.
Hauwa Abu
