…As claims payment stands at N318.2bn
From Uche Usim, Abuja
Despite local and global economic volatilities, assets in Nigeria’s insurance sector grew to N2.33 trillion as at the fourth quarter of 2022.
This was contained in a quarterly report released by the Statistics Department of the National Insurance Commission (NAICOM).
The figure represents a positive growth that signifies expansion at the rate of 2.4 per cent, quarter-on-quarter and at 4.4 per cent year-on-year.
The report, when analysed in granular details, shows that total assets recorded with respect to life insurance stood at 1.22 trillion, while the non-life insurance businesses during the period stood at 1.12 trillion.
Claims pay-outs stood at N318.2 billion representing a 31.2% per cent Quarter on Quarter (QoQ) growth.
The report hinged the performance on the growing awareness, market expansion and sustained consumers’ confidence.
The report further revealed that net claims stood at N244.3 billion, showing a growth of 17.9% QoQ during the same period.
Performance of the Non-Life segment puts Motor Insurance as the leader in claims settlement vis-à-vis gross claims reported at about 92.3% per cent signifying a nine points improvement as against its prior position.
Fire Insurance was the least at about 46.3%, the only class below average proportion.
All 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 reported two points less in comparison to the position held in the prior period of 94.6% of net claims paid compared to total claims reported during the same period of 2021.
Claims settlement in the non-life business grew by 63.7% compared to the previous period 46.9%. It shows that despite operational challenges, the claims settlement experience of insurers is improving.
The report also noted that the result was relatively at a lower momentum compared to the prior period when the progression rate was recorded at about nine per cent year-on-year.
It attributed the downturn to the wave of recapitalisation drive recorded in that period.
However, the outlook of the market growth in terms of assets remains positive, with the increasing measures of market deepening and development and recapitalisation drive still ongoing.
“Also, regulatory insurance laws provisions enshrined in the Insurance Bill, being reviewed and digitisation of the supervisory wide processes would lead to the realisation of the vast potentials in the insurance industry.