Non-life rakes N416.383bn, Life generates N309.361bn in Q4 2022
By Favour Nnabugwu
Non-life insurance business generated a large chunk of the total premium income of N416.838 billion representing 57.4 percent of the entire N726.2bilion
Life business on the other hand rakes in N309.361billion, representing 42.6 percent of the total premium income
The N726.2billion premium generated, represented a growth proportion of about 36.3 per cent, quarter on quarter.
The National Insurance Commission, NAICOM in the Market Bulletin attributed the growth to consistent regulatory measures being carried out by the Commission.
Naicom says while Non-Life business as in the prior periods, continued its dominance, contributing 57.4 per cent premium relative to the share of the Life business of 42.6 percent, the proportional significance of Life in the industry sustained a positive course in recent times 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 per cent, increasing by two point (2.4 per cent) compared to the previous quarter.
The figure posted by Fire Insurance came a distant second (22.2 per cent), maintaining same pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9 per cent), Marine & Aviation (12.2 per cent), even as General Accident (11.1 per cent) and Miscellaneous (9.5 per cent) followed in that order.
On the other hand, Life business was driven by Individual Life portfolio (38.6 per cent) even as its relative contribution fell by about (2.6 per cent) compared to third quarter (41.6 per cent).
In a contrasting path to the previous quarter, group life followed by 34.5 per cent while Annuity business contributed gross premium income of about 26.9 per cent during the period.
In a similar pattern, the net claims paid were reported at N244.3billion, growing at 17.9 per cent QoQ during the same period.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at 92.3 per cent signifying a nine points improvement as against its prior position. Fire Insurance was the least with 46.3 per cent, the only class below average proportion.
All other portfolios of General Accident Insurance (80.7 per cent), Oil & Gas (51.6 per cent), Marine & Aviation (74.4 per cent), miscellaneous Insurances (86.1 per cent) 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 94.6 per cent) of net claims paid compared to total claims reported during the same period of 2021
