Key highlights:
- Claims represented a 31.2 per cent Quarter-on-Quarter growth from the previous quarter.
- They attributed the growth to rising awareness, market expansion and consumer confidence.
- NAICOm said six companies with net loss ratios above 100 per cent were majorly responsible for the average industry loss registered for the period.
Insured Nigerians made claims of N318.2 billion on insurance companies in Q4 2022.
This was disclosed by the National Insurance Commission (NAICOM), a regulator of the industry stated in Lagos on Thursday.
They added that the claims represented a 31.2 per cent Quarter-on-Quarter growth from the previous quarter.
Claims
According to NAICOM insured Nigerians made claims of N318.2 billion on insurance companies in the last quarter of 2022 which represents a 31.2 per cent Quarter-on-Quarter growth from the previous quarter.
They added net claims paid amounted to N244.3 billion, growing at about 18 per cent Quarter-on-Quarter during the same period, the statement read”
- “ They attributed the growth to rising awareness, market expansion and consumer confidence.
- “NAICOM noted that the non-life insurance segment indicated that motor insurance led the result of claims settlement vis-a-vis gross claims at 92.3 per cent, signifying a nine-point improvement as against its prior position.
- “Fire insurance is the least with 46.3 per cent, which is the only class below average proportion.
Other portfolios
NAICOM noted that other portfolios recorded a proportion above the average of paid claims, against gross claims reported, they are General accident insurance with 80.7 per cent; Oil and Gas with 51.6 per cent, Marine and Aviation with 74.4 per cent, and miscellaneous insurances with 86.1 per cent.
- “The data revealed an impressive development with regard to claims settlement in non-life business with a record of 63.7 per cent compared to the previous period of 46.9 per cent.
- “It, therefore, indicates that despite operational challenges, the claims settlement experience of insurers is improving.”
- “Comparatively, the market recorded an aggregate market average of 54.5 per cent of the net loss ratio in the previous period, hence depictive of improved aggregate market desirability and profitability during the current period.
- “Six companies with net loss ratios above 100 per cent were majorly responsible for the average industry loss registered for the period.”
NAICOM said the market recorded about 47.2 per cent net loss ratio during the period under review, suggesting a workable, cost-effective and profitable business in the industry.
What you should know
Nigeria’s leading insurance firms earned a whopping sum of N180.200 billion as revenue in the first nine months of 2022, outperforming their earnings of N146.240 billion in the corresponding period of 2021.
Nairametrics gathered the companies’ collective gross premiums rose by 23.22% compared to 2021.
The growth is remarkable, considering economic headwinds occasioned by the ripple effects of Russia’s invasion of Ukraine which affected energy, power, and food costs, amongst others. The subsequent inflationary pressure has adversely affected many Nigerian household wallets.
The inflationary environment heightened the challenges already being faced by insurance companies in Nigeria, the companies include Nem Insurance Plc, Coronation Insurance Plc AXA-Mansard Plc and AIICO Insurance Plc, Consolidated Hallmark Insurance Plc and Coronation Insurance Plc.