By Favour Nnabugwu
The nation’s insurance industry is striving to reach the 71.3 percent considarate premium retention in the oil and gas with 36 percent attained in 2023
In the equivalent, 36 percent of the total premium generated is N261.432 of N761.2billion.which is quite low compared to the huge risk.
The Bulletin of the Insurance Market Performance as released by the National Insurance Commission, Naicom make the sector’s oil and gas the lowest retention in 2022.
The average premium that all insurance businesses were able to keep locally throughout the time period under consideration was 71.3percent
The Bulletin reads, “The oil and gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.
“In the non-life segment which also took a similar pattern, motor insurance continued its lead as the highest retaining portfolio with a retention ratio of about 93.5 per cent, also a point higher than its standing in the prior quarter.”
“Oil & gas recorded the least at about 35.9 per cent. The oil and gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements”.
“Consequently, the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall non-life business ratio of 55 per cent, slipping from about 56.6 per cent held in the prior period.”
Despite operational constraints brought on by the national and international economies, the sector maintained encouraging company retention rates that were indicative of the market’s resiliency and growing capacity.