Insurance industry ratio of total claims, gross Premium in Q3 2022 hit 46%
By Favour Nnabugwu
Insurance industry has raised it’s standard beyond expectation despite the economic situation of the country, the sector ratio of total claims to Gross Premium hit 46 percent in the third quarter of the year 2022.
During the third quarter of 2022, the gross claims reported by market stood at N242.6billion with a Gross Premium of N532.7billion in the same period
The report released by National Insurance Commission, Naicom on the Synopsis of the Insurance Market Third Quarter 2022 by the Head of Corporate Communications and Market Development, Mr AbdulRasaaq Salami stated that the ratio of total claims to Gross Premium stood at 406 percent during the current period.
Naicom defined insurance claims component as the essence of insurance business as a whole and indeed
a major factor in consumer confidence building.
The total gross claims N242.6billion declined by 2.3 percent in the third quarter of 2022, compared to the corresponding period of 2021.
The net claims paid on the other hand stood at about N207.2 billion, signifying an 85.4 percent of all gross claims reported during the period.
The Life Insurance business recorded a near perfect point of 95.0 percent claims settlement against all the reported claims while non-life segment stood generously at 72.4 percent during the same period.
The Nigerian Insurance industry in the third quarter of 2022 as captured by this analytical report, was a virtue of an excellent performance in the financial services sector of the economy.
It generated N532.7 billion in gross premium income at a Year on Year (YoY) growth rate of 15 per cent during the period.
Gross Premium Income in Non-Life & Life Businesses for the period under review shows life raked in N221.8 billion; Oil & Gas taking N95.9 bn; fire N66.2 bn;
Motor N45.3; Gen. Accident N34.8bn;
Marine. N36.7 bn; Misc. N32.0bn giving a total of N532.7 bn.
The Non-Life insurance business sustained its market dominance at 58.4% of the total premium generated. Insights in the segment show Oil & Gas was the leading driver at 30.8% with Fire Insurance following at 21.3%. Motor Insurance stood at 14.6% while Marine & Aviation, Gen. Accident and Miscellaneous reported a share of 11.8 percent 11.2 percent and 10.3 percent respectively.
Life business on the other hand recorded 41.6 percent of the market production as its
<span;>share contribution gradually closes up. The share of Annuity in the Life Insurance business lagged at about twenty six per cent (25.5%) while Individual Life was at 41.2 percent of the premium generated during the period.