•As total assets hit N2.328trn
By Henry Uche [email protected]
In line with the National Insurance Commission (NAICOM) plans for the insurance sector in its third quarter (Q3) industry performance report of 2022, the industry has recorded 36.3 percent increase quarter on quarter (QoQ) in Gross Premium Income (GPI) and 17.8% year on year (YoY) in the fourth quarter (Q4) of the same year under review.
NAICOM’s quarterly report released by its Statistics department revealed that the industry made N726.2billion GPI in the last quarter of 2022, against N532.7billion it made in the third quarter of the same year. Equally, total claims payment for Q4 of the same year increased by 31.2percent to the sum of N318.2billion, against N242.6billion claims payment made in Q3 of the same year.
According to the regulator, the remarkable market situation compared to the real growth (3.5%) of Gross Domestic Product (GDP) over the same period was attributable to consistent regulatory measures being carried out by the Commission.
“Non-Life business as in the prior period continued its dominance, contributing about fifty-eight (57.4%) per cent relative to the share of the Life business (42.6%), keeping about same position in prior period. The proportional significance of Life in the industry sustained a positive course in recent times reflective of the consumer’s confidence and awareness.
“In-depth analysis of the Non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25percent, increasing by two point (2.4%) compared to the previous quarter. The figure posted by Fire Insurance came a distant second (22.2%) maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9%), Marine & Aviation (12.2%), General Accident (11.1%) and Miscellaneous (9.5%) followed in that order.
“On the other hand, Life business was driven by Individual Life portfolio (38.6%) even as its relative contribution fell by about (2.6%) compared to third quarter (41.6%). In contrast to the previous quarter, group life followed by about thirty-five (34.5%) percent while annuity business contributed gross premium income of about twenty-seven (26.9%) per cent during the period”
NAICOM report that despite operational challenges posed in domestic and global economies, the industry continues to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity. “In the period under review, industry wide average retention ratio stood at about seventy-one per cent (71.3%), although, slightly a point lower than it held in the previous quarter and four points lower in comparison to same period (YoY).
It affirmed that Life business persistently retained about the same point of ninety-three (93.3%) from its prior position of 93.8 percent in quarter three. In the Non-Life segment which also took a similar pattern, Motor Insurance continued its lead as the highest retaining portfolio with a retention ratio of about ninety-four per cent (93.5%), also a point higher than its standing in the prior quarter.
“Oil & Gas recorded the least at about thirty -six per cent (35.9%). The oil and Gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements. Consequently, the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall Non-Life business ratio of fifty-five per cent (55.0%), slipping from about fifty-seven per cent (56.6%) held in the prior period.
“Insurance premium retention of the market remains robust, above average and healthy except in the Oil & Gas business. The same is also true for the Life Insurance business during the period under review.
“The Insurance Claims reported during the fourth quarter stood at N318.2billion representing a thirty-one (31.2%) per cent QoQ growth. Possible attainment was as a result of growing awareness