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Nigeria’s insurance industry posted its strongest performance on record in 2025, with Gross Premium Income (GPI) rising above N2.3 trillion and total industry assets increasing to N4.8 trillion, reflecting stronger underwriting capacity, improved claims settlement and expanding market penetration despite a challenging economic environment.
The figures were disclosed by the Chairman of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, during the Association’s 55th Annual General Meeting (AGM), where he described 2025 as a landmark year that cemented insurance’s growing role in Nigeria’s financial services sector.
According to Ahmed, the industry’s record premium income demonstrates expanding market reach and increased confidence in insurance products.
He said the General Insurance segment contributed N1.57 trillion to the total premium income, driven by the retention of high-value oil and gas risks as well as stronger enforcement of compulsory motor and marine insurance policies.
The Life Insurance business generated N727.4 billion, supported by growing public awareness of long-term financial planning and sustained demand for Retiree Life Annuity products.
“The record premium income reflected the industry’s expanding market reach and stronger underwriting capacity,” Ahmed said.
The industry also strengthened its claims payment record during the year, settling N724.7 billion in gross claims, representing about 31.5 per cent of gross written premiums.
Ahmed noted that the non-life insurance segment achieved a 75.5 per cent claims settlement rate, while the life business recorded a 65.5 per cent settlement ratio, attributing the improvement to better operational efficiency and enhanced claims administration.
He said the stronger claims experience, particularly in specialised portfolios such as oil and gas, has boosted public confidence in the industry despite existing capital constraints.
“The improved claims experience, particularly in specialised portfolios such as oil and gas, has boosted market confidence despite prevailing capital constraints,” he stated.
Ahmed stressed that the ongoing recapitalisation exercise remains a major priority for the industry, saying it would strengthen insurers’ financial capacity, increase underwriting capability and enable the sector to play a greater role in supporting Nigeria’s economic growth through effective risk management.
He further disclosed that total industry assets grew by 7.4 per cent from N4.5 trillion in 2024 to N4.8 trillion in 2025.
According to him, N2.6 trillion of the assets were held by non-life insurers, while life insurance companies accounted for N2.2 trillion.
Ahmed attributed the industry’s growth to stronger regulatory enforcement, increased collaboration with law enforcement agencies and state governments in implementing compulsory insurance, as well as wider adoption of InsurTech solutions and digital distribution channels.
He said technology has enabled insurers to reach underserved markets more efficiently while reducing operating costs.
Ahmed also credited the industry’s improved retention capacity to stronger local expertise in handling specialised risks through initiatives such as the Energy and Allied Insurance Pool of Nigeria, which has helped retain more insurance premiums within the country.
He added that insurers strengthened their capital base and balance sheets ahead of the implementation of the Nigerian Insurance Industry Reform Act 2025, while underwriting discipline and data-driven risk management also improved significantly.
Despite the strong performance, Ahmed acknowledged that insurance penetration in Nigeria remains below both African and global averages.
To address the gap, he said the Association would intensify enforcement of compulsory insurance, expand access to affordable micro-insurance products, promote a “Claims First” culture to boost public confidence, and leverage telecommunications and bancassurance channels to reach more Nigerians.
According to him, these initiatives are expected to increase the sector’s contribution to Nigeria’s Gross Domestic Product (GDP) and position insurance as a stronger driver of sustainable economic development.
Ahmed described the Nigerian Insurance Industry Reform Act 2025 as the most significant regulatory milestone for the industry in decades.
He explained that the legislation replaces the outdated 2003 Insurance Act with a modern legal framework designed to strengthen solvency requirements, improve corporate governance, enhance transparency and provide greater protection for policyholders.
“The legislation introduces Risk-Based Supervision, requires stronger capital adequacy aligned with risk exposure and is expected to trigger industry-wide recapitalisation, mergers, acquisitions and business restructuring as operators adjust to the new regulatory standards,” he said.
While acknowledging that the transition could present short-term operational challenges for insurers, Ahmed maintained that the reforms provide a unique opportunity to build a stronger, more resilient and globally competitive insurance industry.
He reaffirmed the NIA’s commitment to working closely with the National Insurance Commission (NAICOM) to ensure the smooth implementation of the reforms through advocacy, technical support and capacity building.
Reviewing the Association’s activities during the year, Ahmed highlighted the deployment of the upgraded Nigerian Insurance Industry Database (NIID 2.0), which now offers real-time verification of a broader range of compulsory insurance policies.
According to him, the platform is helping to reduce fraud, improve data integrity and strengthen collaboration between insurers, law enforcement agencies and state governments.
He added that the NIA’s technical committees played a key role in assessing the implications of the reform law, harmonising underwriting and claims standards, and engaging regulators to ensure practical implementation of the new capital and supervisory requirements.
Ahmed further disclosed that the Association deepened its engagement with the National Assembly, the Chartered Insurance Institute of Nigeria (CIIN) and other industry stakeholders to promote policies aimed at expanding insurance penetration, strengthening financial sector reforms and building a more transparent, resilient and digitally driven insurance industry.
