The Nigerian insurance sector demonstrated remarkable resilience in the face of macroeconomic headwinds, recording a 5.1% increase in total assets to N3.88 billion in the third quarter of 2024, according to the National Insurance Commission (NAICOM). This represents a significant surge compared to the N2.81 billion recorded in the corresponding period of 2023.
While the sector experienced robust growth, claims payouts remained substantial, reaching N564 billion, constituting a significant 48.1% of the total premiums generated during the period. This underscores the critical need for the industry to accelerate premium growth and implement appropriate rate-setting mechanisms to ensure long-term sustainability.
“The industry showed resilience amid macroeconomic challenges, sustaining its growth trajectory at 60.9% year-on-year,” NAICOM stated in its report. This impressive growth was further solidified by a 44.3% quarter-on-quarter increase, culminating in a robust Gross Premium Written (GWP) of N1.173 billion.
“The consistent policies of the commission and market resilience have contributed significantly to this positive outcome,” NAICOM emphasized.
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The non-life insurance segment continued to dominate the market, accounting for a substantial 68.9% of the total GWP. However, the life insurance segment also demonstrated significant growth, with a notable claim settlement ratio of 81.6%.
This period of growth for the Nigerian insurance sector is particularly noteworthy given the challenging economic climate. It serves as a testament to the industry’s adaptability and its crucial role in supporting the nation’s economic development.
Moving forward, the industry must focus on enhancing its customer experience, expanding its product offerings, and leveraging technological advancements to further solidify its position as a key player in the Nigerian financial landscape. By continuously adapting to the evolving needs of the market and addressing the challenges posed by claims payouts, the Nigerian insurance sector can continue its trajectory of growth and contribute significantly to the nation’s economic prosperity.
