Insurance industry recorded N726.26bn gross premium income in Q4 2022

The nation’s insurance industry recorded a gross premium income as at the fourth quarter of 2022 stood at N726.2billion, representing a growth proportion of about thirty-Six per cent (36.3%), quarter on quarter and indeed, about eighteen per cent (17.8%) year on year.

According to Bulletin of the insurance market performance released by the National Insurance Commission (NAICOM), said this is a remarkable situation compared to the real growth (3.5%) of Gross Domestic Product (GDP) over the same period and, is attributable to consistent regulatory measures being carried out by the Commission.

Table 1 shows the contribution of the gross premium income by eachd class of business for the period under review.

For instance, motor business recorded N62.2 billion, fire business recorded N93.6 billion , general accident got N46.1 billion, Marine business N51.0 billion, oil and gas N125.7 billion, miscellanous recorded N39.7 billion, life business recorded N309.9 billibillio

Besides, premium retention capacity reports in the phase of operational challenges posed in domestic and global economies, the industry continues to post inspiring numbers in business retention, reflective of the market resilience and increasing capacity. In the period under review, industry wide average retention ratio stood at about seventy-one per cent (71.3%), although, slightly a point lower than it held in the previous quarter and four points lower in comparison to same period (YoY).
Persistently, the Life business retained about the same point of ninety-three (93.3%) from its prior position of 93.8% in quarter three. In the Non-Life segment which also took a similar pattern, Motor Insurance continued its lead as the highest retaining portfolio with a retention ratio of about ninety-four per cent (93.5%) also a point higher than its standing in the prior quarter. Oil & Gas recorded the least at about thirtysix per cent (35.9%). The oil and Gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.

Consequently, the retention performance in the current period sustained its prior position when compared to the third quarter as evidenced by the overall Non-Life business ratio of fifty-five per cent (55.0%), slipping from about fifty-seven per cent (56.6%) held in the prior period.