Insurance Coys Pay N1.5trn Claims in Six Years

Insurance companies in Nigeria have so far paid N1.5tn claims to their customers in six years according to industry statistics.

Data obtained from the industry regulator, the National Insurance Commission, reveal that the claims paid by the underwriters have been on the rise with increased awareness and premiums.

According to the industry bulletin report for 2022 financial period released by NAICOM, the industry paid claims totalling N318.2bn to its customers in the period under review.

Claims of N336.8bn was recorded in 2021, from N247bn in 2020 and N225bn in 2019.

The claims paid in 2018 and 2017 were N252bn and N186bn respectively.

Total claims paid in the six-year period amounted to N1.5tn.

The NAICOM bulletin reveals that premiums earned by the industry rose to N726bn in 2022 from N616.6bn in 2021, and N514bn in 2020.

Premiums of N508.23bn, N426.2bn and N372bn were earned in 2019, 2018 and 2017 respectively.

The premium in the periods under review amounted to N3.16tn.

NAICOM states in the 2022 bulletin that “the insurance claims reported during the fourth quarter stood at N318.2bn representing 31.2 per cent QoQ growth.

“Possible attainment as a result of growing awareness and market expansion as well as consumer’s confidence.”

Fire insurance was the least at about 46.3 percent, the only class below average proportion.

All other portfolios of general accident insurance at 80.7 percent, oil & gas at 51.6 percent, marine & aviation at 74.4 percent, miscellaneous insurances at 86.1 percent 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 94.6 percent of net claims paid compared to total claims reported during the same period of 2021.

NAICOM, recently, said it will revisit the decision to publish the list of claims-paying underwriting firms.

Punch/Hauwa Abu