Various developmental initiatives undertaken by the industry regulator – National Insurance Commission (NAICOM), may have triggered a quantum leap in the industry financial performance in the second quarter of this year.
For instance, the total assets of the nation’s insurance industry rose to N2.3 trillion in the second quarter of 2022, thereby growing by 11.9 per cent, translating to over N200 billion from second quarter of the previous year.
Specifically, the industry’s financial position revealed a total of N1.2 trillion in assets of non-life business while the life business stood at about N1.1trillion, translating to N2.3 trillion cumulatively.
According to the Bulletin of the insurance market performance, second quarter 2022 report released by the National Insurance Commission (NAICOM) at the weekend and obtained by AssurPen Online, the regulatory body said the insurance market performance for second quarter 2022 revealed some quality improvements in the market indicators including growth, claims settlement and profitability.
This performance analysis of the sector, NAICOM said was an insight into the market behaviour in the second quarter of 2022, adding that the market recorded about N369.2 billion gross premium income during the period which indicates a 20.1 per cent growth rate compared to the same period of the previous year and an impressive 65 per cent quarter on quarter.
The continued steady growth from the first quarter of the year, it stressed, correlated with the current performance of the period under review, adding that the market could be adjudged as sound and stable whilst the stance of the market deepening remains optimistic.
Similarly, insurance companies incurred N174.8 billion gross claims paid to policyholders who suffered insurance risks in the quarter.
According to the regulatory report, “the growth of the gross claims reported was (0.2 per cent) during the quarter compared to the corresponding period of 2021. The industry statistics for gross claims in second quarter of 2022 stood at N174.8 billion, representing 47.3 per cent of all premiums generated during the period.”
This development, NAICOM said reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission, adding that the net claims paid, on the other hand, stood at about N148.2 billion, signifying a 84.8 per cent of all gross claims reported during the period.
“The Life Insurance business recorded a near perfect point of about ninety (88.90 per cent) claims settlement as against the reported claims while non-life segment stood at about seventy-seven (76.8 per cent),” the report said.
Besides, the report said “the insurance market indeed remained profitable during the period recording an overall industry average of about fifty-seven per cent (56.9 per cent), maintaining a relative position (57.7 per cent) recorded in the corresponding period of the preceding year.
“The non-life segment loss ratio stood at 43.6 per cent while the life business stood at about sixty-nine (68.5 per cent) depicting a less profitable scenario comparatively over the same period. The net loss ratio for non-life bears an improved market image in the current period as compared to the preceding period when it was 48.2 per cent.”