By Favour Nnabugwu
Insurance industry total asset grew by 11.9 percent in the second quarter of 2022 to a a whopping N2.3 trillion, the National Insurance Commission (NAICOM) had revealed
NAICOM stated this in publication entitled: Bulletin of the Insurance Market Performance : Synopsis of the Insurance Market Second Quarter, 2022, adding that the sector recorded an increased rate of growth at 11.9 per cent, quarter on quarter with a total asset of about N2.3 trillion.
The total assets rose by 11.9 per cent, translating to over N200 billion from second quarter of 2021
The industry’s financial position revealed a total of N1.2 trillion in assets of Non-Life business while the Life business stood at about N1.1trillion, translating to N2.3 trillion cumulatively.
The market data reveals that the industry grew 20.1 per cent higher than the national real Gross Domestic Product (GDP) of 3.5 per cent during the same period, NAICOM submitted.
The insurance industry market recorded N369.2 billion gross premium during the period, indicating a 20.1 per cent growth rate compared to the same period of the previous year and an impressive 65 per cent quarter on quarter.
The continued steady growth from the first quarter of the year, it stressed, correlated with the current performance of the period under review, adding that, the market could be adjudged as sound and stable whilst, the stance of the market deepening remains optimistic
Similarly, insurance companies incurred N174.8 billion gross claims, paid to policyholders who suffered insurance risks in the quarter.
According to the regulatory report, “the growth of the gross claims reported was (0.2percent) during the quarter compared to the corresponding period of 2021. The industry Statistics for gross claims in Q2 of 2022 stood at N174.8 billion, representing 47.3 percent per cent of all premiums generated during the period.”
This development, NAICOM said, reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the commission, adding that, the net claims paid, on the other hand, stood at about N148.2billion, signifying an 84.8 percent of all gross claims reported during the period.
The Life Insurance business recorded a near perfect point of about ninety (88.90 percent) per cent claims settlement as against the reported claims while non-life segment stood at about seventy-seven (76.8 percent) per cent,” it pointed out.