The gross premium income generated as at the fourth quarter of 2022 stood at N726.2 billion.
This was contained in the Bulletin of the Insurance Market Performance released on Thursday by the National Insurance commission (NAICOM).
According the report this is representing a growth proportion of about thirty-Six per cent (36.3%), quarter on quarter and indeed, about eighteen per cent (17.8%) year on year.
NAICOM said, “This is a remarkable situation compared to the real growth (3.5%) of Gross Domestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission.
Also, “Non-Life business as in the prior periods, continued its dominance, contributing about fifty-eight (57.4%) per cent relative to the share of the Life business (42.6%), keeping about same position in prior period. The proportional significance of Life in the industry was 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%, increasing by two points (2.4%) compared to the previous
quarter. The figure posted by Fire Insurance came a distant second (22.2%) maintaining same
pattern of contribution to the gross premium pool of the market while Motor Insurance (14.9%),
Marine & Aviation (12.2%), General Accident (11.1%) and Miscellaneous (9.5%) followed in that
“On the other hand, Life business was driven by Individual Life portfolio (38.6%) even as
its relative contribution fell by about (2.6%) compared to third quarter (41.6%). In a contrasting
path to the previous quarter, group life followed by about thirty-five (34.5%) per cent while
Annuity business contributed gross premium income of about twenty-seven (26.9%) per cent
during the period.”
The report further maintains that in the phase of operational challenges posed in domestic and global economies, the industry continues to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity.
“In the period under review, industry wide average retention ratio stood
at about seventy-one per cent (71.3%), although, slightly a point lower than it held in the
previous quarter and four points lower in comparison to same period (YoY). Persistently, the
Life business retained about the same point of ninety-three (93.3%) from its prior position of
93.8% in quarter three.
“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 ninety-four per cent (93.5%) also
a point higher than its standing in the prior quarter. Oil & Gas recorded the least at about thirty-
six per cent (35.9%).
“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 fifty-five per cent
(55.0%), slipping from about fifty-seven per cent (56.6%) held in the prior period,” the report said.