Top 10 insurers in Non-Life contributed 64.2%, top 3 Life companies generated 49.3% in Q3 2022
By Favour Nnabugwu
Insurance companies are in their strides making waves as top 10 underwriters in the Non-Life section of the industry underwrite 64.2 per cent of the gross premiums income in the third quarter 2022
This was an increase its position of 60.8 percent recorded in the same quarter last year.
The Synopsis of the Insurance Market Third Quarter 2022 released by the National Insurance Commission, Naicom also showed that top three Insurers contributed 49.3 percent of all premiums generated during the period compared to 45.4 percent recorded in the previous period.
In the same vein, the Non-life business had a record of 0.2 percent of its market share contributed by the least three of the underwriters, same as in the prior period of second quarter of the year while about 31 percent of the Non-life gross premium was contributed by its top three Insurers, up from about 27 percent it recorded in the previous quarter.
In the overall analysis, the market maintained a fairly balanced concentration especially in the Non-Life section of the industry
From the ongoing, the market Statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth, retention, claims management experience and profitability, at levels of which the industry could be ruled as
profitable, sound and stable.
Naicom also said that the on-going digitisation and market deepening measures of the Commission, the outlook remains strongly positive
The market concentration as shaped by competition and other factors in the industry revealed a rather similar scenario compared to the second quarter of 2022, indicating that the market control setting has not significantly changed in the last three months
In the overall gross premium of N532.7billion generated Ithe third quarter 2022, claims settlement took a direct reflection of the market premium retention as Motor Insurance retained its lead, posting a claims settlement ratio 91 percent
This is followed by Miscellaneous insurances reporting about eighty one per cent as paid claims ratio to all reported claims during the period while General Accident 74.4 percent
Marine & Aviation 74.3 percent and Fire Insurance 59.6 percent trailed in that order.
The Oil & Gas business stood out as the most improved portfolio in this respect at 65.3 percent of claims settlement ratio, an increase of 41 points compared to its position of 23.9 percent recorded in the corresponding period of 2021.
The experience in Oil & Gas corner of the market with respect to claims settlement could be attributable to the increasing capital and, underwriters’ growing confidence and dexterity in the market.
Similarly, the claims settlement ratio of the life business stood at 95 percent while the aggregate industry average was recorded at 85.4 percent during the quarter.
In the Life business segment, the least three companies recorded a proportional contribution of about 0.1 percent, same
The Insurance market indeed remained profitable during the period, recording an overall industry average of 54.5 percent, a noteworthy performance though lesser, compared to 46.7% recorded in the corresponding period of preceding year.
The Non-Life segment stood at 43.5% better than in the Life business which reported a net loss ratio of 63.6 percent during the period.
The sustained lower net loss ratios of the non-life which is relatively a short-term business, is good for the market as it could quickly register some good market image and confidence in the industry.
