Insurance assets hit N2.8tr

From Uche Usim, Abuja

Insurance sector assets grew to N2.8 trillion in the third quarter of the year, showing strong resilience against local and global volatilities.

The National Insurance Commission (NAICOM), which made the disclosure in its latest report said that the major drivers of the growth during the period were; individual life, 36.4 per cent; group life, 34.5 per cent; oil and gas, 28.9 per cent, fire, 23.6 per cent and motor 18.1 per cent.

Further analysis shows that total assets for non-life insurance stood at N1.74 trillion while total assets for life business was N1.07 trillion.

NAICOM also revealed that industry operators paid N365.5 billion as claims to policyholders at the end of Q3, 2023.

The report added that net claims stood at N259 billion while gross premium written was N729.1 billion within the period under review.

The Commission, while assuring stakeholders of quality regulation added that the Insurance Industry 10-year Strategic Road map will increase insurance penetration from the current rate of 0.4% to 2.1% by the year 2033.

NAICOM boss, Sunday Thomas, explained that the roadmap is also expected to revolutionise the industry and substantially improve the rating of the Nigerian insurance market in the global insurance map.

On performance and potential of the insurance sector, he said “the sector has over the years experienced an average steady year on year growth of 15.1% in premium income, however this is far below the opportunities provided by the Nigeria economy.

“It is on record that the cumulative assets of the Contributory Pension Scheme is in excess of N17trillion. The question now is how will the insurance sector maximise its share of this growing fund?

“There is the need to support the government drive towards reviving the economy and de-risking individual and business ventures”, Thomas noted.