Nigeria’s insurance industry recorded robust growth in 2023

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THE Nigerian insurance industry in 2023 recorded significant growth and resilience in various key indicators, data from the Statistics Department of the National Insurance Commission (NAICOM) has shown.

According to the NAICOM data, the Life business sector retained an impressive 87.7 percent of premiums, indicating strength, stability, and emphasising the industry’s resilience and positive market performance throughout the year, as outlined in the Q4, 2023 report.

However, the Non-Life segment lagged behind, retaining only 54 percent of premiums, culminating to an aggregate market average retention of 66.7 percent.

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The non-life segment witnessed remarkable expansion, driven primarily by the Oil & Gas and Fire Insurances, which contributed 27.3 percent and 24.1 percent, respectively, to the market’s overall growth during the period under review.

The growth recorded in all key areas was attributed to the regulatory landscape, which played a crucial role in shaping the industry’s performance, particularly claims settlement.

Following the trend, the Life business showed a marked 95 percent of net claims, higher than the market average of approximately 71.4 percent of the N536.5 billion gross claims reported in the fourth quarter of 2023 (Q4 2023).

Also, the implementation of the “no-premium no-cover” policy led to a decline in outstanding premiums by 1.6 percent, signifying Nigeria’s commitment to financial prudence and risk management.

The industry’s financial health recorded significant figures, with total assets hitting about N2.67 trillion and Capitalisation reaching N851 billion in 2023, reflecting a good foundation for future growth and sustainability of the sector.