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By Henry Uche
Insurance companies were able to grow their total assets by 36.9 per cent, year-on-year, YoY, to N3.3 trillion in the first quarter (Q1’24) from N2.4 trillion in the corresponding period of Q1’23, not minding the scorching economic environment eroding purchasing power.
The regulator, National Insurance Commission, NAICOM, made this known in its first quarter Q1’24 industry report of the insurance sector. According to the report, total assets of non-life business stood at N1.9 trillion while total assets of life business stood at N1.4 trillion.
NAICOM also disclosed that, the sector strongly sustained positive performance and market deepening capacity indicating its ability to adapt and grow irrespective of the excruciating macroeconomic headwinds.
Further analysis of the report show that industry gross premium income increased by 51 per cent to N470.7 billion in Q1’24 from N311.5 billion recorded in Q1’23.
According NAICOM, the impressive increase was attributable to the regulatory measures and market dynamics in the period under review.
Analysis of the report showed that non-life segment led the market as it generated premium income of N326.9 billion indicating 69.5 per cent contribution of the total premium pool while the life segment generated N144.9 billion representing 30.5 per cent of the total premium during the period.
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Claims settlement paid increased by 71.8 per cent to N149.1 billion in Q1’24 from N86.8 billion recorded in Q1’23. NAICOM explained that the growth in claims payment is a reflection of increased public enlightenment and growing confidence of stakeholders concerning claims settlement.
“It is a win-win position for insurers, policyholders and society at large as well as stakeholder confidence remains a major determinant of market deepening and sustainability in the long run.” it affirmed.
Meanwhile industry watchers and analysts foresee an increase in the demand for insurance products and services even as the economy bits harder.
According to them, though not many Nigerians would see reasons to embrace insurance for life and properties, however, those with the right information and understanding of volatile business environment would not hesitate to guard themselves by picking up appropriate insurance cover.
But in other to absorb more people into the insurance net, the need for mass but radical awareness campaign particularly in the hinterlands becomes indispensable.
If this is down, Nigerians would without persuasion begin to look for insurance companies to protect their assets and other resources (if not life assurance) even as the economy remains unpredictable in the nearest future, they maintained.
