Despite the challenging landscape of the economic environment, insurance companies managed to achieve remarkable growth, with their total assets expanding by 36.9 percent year-on-year, reaching N3.3 trillion in the first quarter of 2024 compared to N2.4 trillion in the same period of 2023, according to the recent report released by the National Insurance Commission (NAICOM).
The report highlighted that the total assets of non-life insurance businesses amounted to N1.9 trillion, while the total assets of life insurance businesses reached N1.4 trillion, showcasing a balanced growth trajectory across different sectors within the insurance industry.
NAICOM’s analysis underscored the insurance sector’s resilience and capacity for market augmentation, demonstrating its aptitude to evolve and expand amidst the prevailing macroeconomic adversities. The sustained positive performance and market penetration capabilities signify the industry’s adeptness in navigating challenges and fostering growth opportunities.
Delving deeper into the report, it was revealed that the industry’s gross premium income surged by 51 percent to N470.7 billion in the first quarter of 2024, up from N311.5 billion in the corresponding period of 2023. This substantial increase was attributed to a combination of stringent regulatory measures and dynamic market forces that propelled the industry’s financial performance.
A closer examination of the report unveiled that the non-life insurance segment exemplified market dominance by generating a premium income of N326.9 billion, constituting a substantial 69.5 percent share of the total premium pool. Concurrently, the life insurance segment contributed N144.9 billion, representing 30.5 percent of the total premium income during the period under review, illustrating a diversified revenue stream within the insurance landscape.
In terms of claims payment, the data indicated a notable upsurge, with claims disbursed escalating by 71.8 percent to N149.1 billion in the first quarter of 2024 compared to N86.8 billion in the corresponding period of 2023. NAICOM attributed this surge in claims settlement to heightened public awareness and the amplified confidence of stakeholders in the insurance sector’s commitment to resolving claims promptly and efficiently.
The regulatory body emphasized that this growth in claims payment signifies a positive trend reflecting increased stakeholder trust and confidence in the insurance industry’s reliability, portraying a win-win situation for insurers, policyholders, and society at large. The enduring confidence of stakeholders serves as a pivotal factor in fostering market depth and ensuring the sustainability of the insurance sector in the long run, underscoring the importance of trust and transparency in driving industry growth and stability.
