Non-life 57.4% Life 42.6%; claims rise by 31.2%
By Favour Nnabugwu
insurance industry generated a gross premium income of N726. 2 billion in the fourth quarter of 2022 out of which Non- Life recorded 57.4 percent and Life 42.6 percent.
The National Insurance Commission (NAICOM) the gross premium income generated under review represented a 36.3 percent quarter- on- quarter and 17.8 percent year-on-year.
The contribution of the gross premium income by each class of business for the period under review showed that Non-Life business as in the prior periods, continued its dominance, contributing 57.4 percent per cent relative to the share of the Life business which was 42.6 percent
According to the Commission, “This is a remarkable situation compared to the real growth (3.5%) of Gross Gomestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission.
“The proportional significance of Life in the industry sustained a positive course in recent times was reflective of the consumer’s confidence and awareness.”
In-depth analysis of the Non-Life segment of market shows Oil & Gas business sustaining its market share dominance at 30.25 percent, increasing by two point 2.4percent) compared to the previous quarter.
The figure posted by Fire Insurance came a distant second (22.2 percent) maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9 percent).
Marine & Aviation (12.2 percent), General Accident (11.1 percent) and Miscellaneous (9.5 percent) followed in that order.
On the other hand, Life business was driven by Individual Life portfolio (38.6 percent) even as its relative contribution fell by about (2.6 percent) compared to third quarter (41.6 percent).
In a contrasting path to the previous quarter, group life followed by about thirty-five (34.5 percent) per cent while Annuity business contributed gross premium income of about twenty-seven (26.9 percent) per cent during the period.
claims payment increase by 31.2%
The Insurance industry’s Claims reported during the fourth quarter of last year stood at N318.2 billion, representing a 31.2 percent per QoQ growth.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 percent), signifying a nine points improvement as against its prior position.
In the Bulletin, Fire Insurance was the least at about 46.3 percent. All other portfolios of General Accident Insurance (80.7 percent), Oil & Gas (51.6 percent), Marine & Aviation (74.4 percent), miscellaneous Insurances (86.1 percent) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business on the other hand reported two points less in comparison to the position held in the prior period of ninety-five (94.6 percent) per cent of net claims paid compared to total claims reported during the same period of 2021.
