The Insurance industry reported claims for fourth quarter 2022 stood at N318.2billion, representing 31.2 per cent Quarter -to-Quarter (QoQ) growth, the National Insurance Commission(NAICOM) has said.
NAICOM said this in a bulletin of the Insurance Market Performance titled : Statistics Department Quarterly Report of the Insurance Market, Fourth Quarter, made available on Thursday in Lagos.
The commission stated that the record was as a result of growing awareness, market expansion and consumer’s confidence.
It said the net claims paid were reported at N244.3billion, growing at about 18 per cent QoQ, during the same period.
NAICOM noted that non-life insurance segment indicated that motor insurance led the result of claims settlement vis -a -vis gross claims reported at 92.3 per cent, signifying a nine points improvement as against its prior position.
It said fire insurance was the least with 46.3 per cent, which is the only class below average proportion.
The commission reported that all other portfolios such as : General
accident insurance with 80.7 per cent, Oil & Gas with 51.6 per cent, Marine & Aviation with 74.4 per cent, miscellaneous insurances with 86.1 per cent, recorded a proportion above the average of paid claims, against gross claims reported.
It said life insurance business on the other hand reported two points less in comparison to the position held in the prior period of 95 per cent of net claims paid, compared to total claims reported during the same period of 2021.
” The data revealed an impressive development with regards to claims settlement in the non-life business with a record of 63.7 per cent compared to the previous period of 46.9 per cent.
” It therefore indicates that despite operational challenges, the claims settlement experience of insurers is improving,” it said.
According to NAICOM, the market recorded about 47.2 per cent net loss ratio during the period under review, suggesting a workable, cost effective and profitable business in the industry.
The commission attributed the performance mostly to the life business sustaining its positive course at 46.5per cent net loss ratio in the current period while the non-life portfolio recorded about 48.1 per cent during the same period.
“Comparatively, the market recorded an aggregate market average of 54.5 per cent of net loss ratio in the previous period, hence depictive of an improved aggregate market desirability and profitability during the current period.
“Six companies with net loss ratios above 100 per cent were majorly responsible for the average industry loss registered for the
period,” NAICOM said.
