The Nigerian insurance industry witnesses impressive growth as premium volume reaches N726.2 billion in 2022.
The Nigerian Insurers Association (NIA) announces the 33.9% increase in premium income during its 52nd AGM in Lagos.
Leading insurance companies paid a total of N129.93 billion in net claims, indicating a 39% claims expense ratio compared to 41% in 2021.
Nigeria’s insurance industry records a significant surge in premium volume, reaching an impressive N726.2 billion in 2022.
The Nigerian Insurers Association (NIA) shared this remarkable growth during its 52nd Annual General Meeting (AGM) held in Lagos yesterday, through the Chairman Mr. Olusegun Omosehin.
This figure marks a substantial 33.9% increase compared to the N569.1 billion premium income recorded in 2021.
Omosehin noted that despite the economic downtown in the country, Nigeria’s insurance industry continues to be an economic driver and safeguard of national assets, he added:
“As a subset of the national financial system, the insurance industry also had a fair dose of the general economic and socio-political problems bedeviling the country in the past year.
“Perennial power outages, herders and farmers conflicts, kidnapping, banditry poor infrastructural facilities, increasing poverty, galloping inflation, flooding, and other natural catastrophes.
“Also, geometric rise in the exchange rate of the business resulting in high cost of operations.
“Notwithstanding these challenges, insurance companies continue to discharge their obligations as financial intermediation and restorer of businesses in line with their mandate.”
Inclusive Financial Services
The Insurance Chief declared that the NIA is also closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services and technology segments to promote the business of insurance.
He added the collaboration was geared toward increasing the sector’s contribution to the national Gross Domestic Product (GDP), which will lead to an increase in insurance penetration and density.
He also mentioned that the Consolidated Insurance Bill 2020 was not signed into law during the 9th Assembly, despite the spirited effort made by the association to ensure that it was.
Omosehin also commended the significant progress made by the Energy and Allied Insurance Pool of Nigeria (EAIPN), which he says enables the buying of local capacity and reduces premium flight in oil and gas underwriting.
Meanwhile, Mrs. Yetunde Ilori, Director-General, NIA, said that in the course of the year under review, the association collaborated on a joint project with the Lagos State Vehicle Inspection Service (VIS), urging it was made mandatory by extant laws through the Automatic Number Plate Recognition (ANPR) device of VIS and the Nigerian Insurance Industry Database (NIID), verification platform of NIA.
What you should know
Leading insurance companies in Nigeria paid a total of N129.93 billion in net claims in the full year of 2022 as against N109.63 billion recorded during the comparable period in 2021.
This is according to data compiled by Nairametrics from the financial reports of Custodian Insurance, NEM Insurance, Coronation, Mansard Plc, AIICO, Mutual Benefits Assurance, and Cornerstone Insurance, all of which are among the largest insurance companies quoted on the Nigerian Exchange.
The insurance companies also earned a total of N335.04 billion in gross premium income during the period under review, compared to N267.66 billion in 2021.
This means the insurance companies paid 39% of their premium income as claims expenses compared to 41% in the same period last year, a marginal decrease of 2%.
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