Insurance Industry Grows Premium By 44.3% In Q3’24

 

…Claims Payment Skyrockets By 89.4%

Harboursandport.com: Lagos – January 29, 2025: The Nigeria insurance industry recorded 44.3 per cent, Quarter-on-Quarter, QoQ growth in  Gross Premium Written, GPW,  to N1.173 trillion in the third quarter of 2024, Q3’24, from N813.4 billion  in the second quarter of 2024, Q2’24.

National Insurance Commission, NAICOM,  disclosed this in the  third quarter bulletin of the insurance market performance which showed that gross claims increased by 89.4 per cent, QoQ to N564.1 billion from N297.9 billion recorded in Q2’24.

Ayo Omosehin, Commissioner for Insurance

The report stated: “The gross premium written in the third quarter of 2024 stood at N1.173.1 trillion, a remarkable occasion attributable to the consistent deepening policy of the Commission and market resilience.

“The performance was majorly led by the non-life sector, recording a market share of 68.9 per cent for a total volume of N808.4 billion while the life segment accounted for 31.1 per cent of the market premium aggregate.”

According to the industry statistics, the market achieved a substantially higher rate of growth compared to the national output (GDP) which grew at 3.5 per cent during the period under review, signifying its impressive performance and potential propensity.

“The Non-Life segment maintained its dominance, accounting for 68.9 per cent of the total premium generated during the period, closely aligning with its 69.1% share in the previous quarter. Within this segment, the Oil & Gas portfolio led with a 35.2% contribution, followed by Fire Insurance at 21.3%. Motor Insurance also accounted for 14.4%, while Marine & Aviation, General Accident, and Miscellaneous contributed 12.4%, 9.0%, and 7.5%, respectively.

“The Life business on the other hand contributed 31.1% of the total premium, gradually increasing its proportional share of the industry’s gross premium. Analysis of the Life Insurance segment also shows that, Annuity business accounted for 31.8% of the total gross premium, while Individual Life business led with about 41.8% contribution of all the life insurance premiums during the quarter. The statistics of the financial position of the market also recorded a total of N2, 337.9 billion in Assets as attributable to Non-Life business while the Life business accounted for N1, 539.2billion as total Assets at the close of the quarter.”