Insurance Sector Grow Premium by 35% in 2023

Ebere Nwoji

Insurance sector at the close of business year 2023 achieved 35 per cent growth over what it achieved in 2022 in terms of premium generation. 

From N736.2 billion premium generated in 2022, the sector in 2023 generated over N1 trillion premium.

Industry stakeholders said this marked the achievement of a trillion Naira market target set for the industry by NAICOM.

Total assets of the sector during the period stood at N2.67 trillion while capitalisation stood at N 851 billion in 2023. 

The net claim posted by the industry was N669.4 billion, with the non-life segment contributing N329 billion, while the life segment recorded N340.4 billion. 

Presenting the report at the 59th Annual General Meeting (AGM) of the Nigeria Insurance Association (NIA), held in Lagos, the association’s Acting chairman  Kunle Ahmed, lamented the persisting  low insurance penetration in the country.

“Insurance penetration is still very low with efforts to raise the low rate of penetration tied to addressing persistent levels of unemployment and poverty. The Association will continue to support, collaborate and work closely with the National Insurance Commission (NAICOM) and other stakeholders within the financial services sector to promote the business of insurance through the development of innovative products especially for those financially excluded, and the enforcement of compulsory insurances towards the growth and development of our industry,” he said.

Ahmed was optimistic that passage of the Nigerian Insurance Reform Bill 2024 currently waiting on the floor of 10th National Assembly would go a long way to address the low insurance penetration problem.

He said the association had made spirited effort to ensure that the Consolidated Insurance Bill 2023 was signed into law during the last administration, but that this was not achieved. 

He said currently concerted efforts were being made by the association to ensure the new revised bill was passed to reposition the insurance industry and to enable stakeholders  operate in line with global best practice. 

“We thank all members of the Governing Council, our past chairmen that work assiduously in the light of the previous bill and have also continued to provide the needed support to see that the new bill is signed into law. To all our members and other stakeholders, we thank you for your support and continued faith in the Association and we remain resolute on our promise that we will work closely with all the relevant stakeholders to ensure that the new bill is signed into law,” Ahmed said.