Nigeria’s Insurance Sector hits N2.8 trillion mark with N729.1 billion premiums in nine months

Nigeria’s insurance sector has witnessed substantial growth, reaching a total value of N2.8 trillion, with insurance companies reporting N729.1 billion in premiums during the first three quarters of 2023. This information was disclosed in the recent report titled ‘Nigeria Insurance Market at a Glance – Q3, 2023’ by the National Insurance Commission (NAICOM).

The report outlines that these insurance companies paid out N365.5 billion in gross claims, with net claims amounting to N259 billion during the reviewed period. In the non-life business category, oil and gas constituted 28.9%, fire accounted for 23.6%, and motor insurance contributed 18.1% to the overall premiums.

Breaking down the life insurance segment, individual life policies represented 36.4%, while group life policies constituted 34.5%. NAICOM’s report revealed that the industry’s total size stands at N2.81 trillion, with non-life and life insurance contributing N1.7 trillion and N1.1 trillion, respectively.

Mr. Sunday Thomas, the Commissioner for Insurance, shared during the Insurance Directors’ Conference in Lagos that the industry has adopted a strategic roadmap aimed at transforming the insurance sector through a well-coordinated implementation approach. He emphasized the goal of increasing insurance penetration from the current 0.4% to 2.1% by 2033, aiming to significantly enhance Nigeria’s standing on the global insurance landscape.

Mr. Thomas acknowledged the sector’s consistent year-on-year growth of 15.1% in premium income but stressed that there is substantial untapped potential within the Nigerian economy that the insurance industry should strive to leverage.