During the initial three quarters of 2023, the Nigerian insurance domain expanded, reaching a substantial N2.8 trillion, driven by a cumulative premium income of N729.1 billion from life and non-life ventures. The latest report by the National Insurance Commission titled ‘Nigeria Insurance Market at a Glance – Q3, 2023’ unveiled these insights.
Within this period, companies disbursed N365.5 billion in gross claims, with net claims totaling N259 billion, as outlined in the report.
Non-life sectors, specifically oil and gas (28.9%), fire (23.6%), and motor (18.1%), comprised significant portions. On the other hand, individual life (36.4%) and group life (34.5%) dominated the life business landscape.
The industry’s overall size stood at N2.81 trillion, with non-life and life segments accounting for N1.7 trillion and 1.1 trillion, respectively. At a recent insurance directors’ conference in Lagos, the Commissioner for Insurance, Mr. Sunday Thomas, highlighted the industry’s launch of a strategic roadmap aimed at overhauling the insurance sector through a meticulously planned implementation approach.
“Insurance penetration is expected to move from the current rate of 0.4 per cent to 2.1 per cent by the year 2033 and, which will substantially improve the rating of the Nigerian insurance market in the global insurance map.
“Concerning the performance and potential of the insurance sector, the sector has experienced an average steady year-on-year growth of 15.1 per cent in premium income; however, this is far below the opportunities provided by the Nigerian economy,” he said.
