Nigerian Insurance Firms Pay Out N564bn Claims in Q3 of 2024

Data released by the National Insurance Commission (NAICOM) on Monday showed that in the third quarter of 2024, insurers paid about N564.1 billion as claims, representing 48.1 per cent of the total premiums generated between July and September.

According to the regulator, the life insurance segment recorded an impressive claims settlement ratio of 81.6 per cent versus 73.6 per cent in the non-life segment achieved 73.6 per cent.

“The ratio of net claims paid demonstrated strong performance across various business classes. Motor Insurance achieved an outstanding ratio of 92.3 per cent, followed by Miscellaneous at 88.9 per cent.

“General Accident and Fire businesses recorded 86.3 per cent and 75.1 per cent, respectively. The oil & gas business, while lower at 63.7 per cent, showed significant progress compared to 43.1 per cent recorded in the corresponding period of the previous year,” a part of the report stated.

It was revealed that during the review period, the total assets in the sector grew by 5.15 per cent to N3.88 trillion from N3.69 trillion in the second quarter of last year, with the non-life business accounting for N2.34 trillion and the life business contributing N1.54 trillion.

Also, the gross premium written went up by 44.3 per cent to close at N1.17 trillion, with the non-life sector accounting for 68.9 per cent at N808.4 billion and the life segment accounting for 31.1 per cent at N362 billion.

“The industry indeed has demonstrated some significant level of robustness, profitability, and stability as established by the performance in premium generation, favourable net loss ratios, substantial market expansion, and a competitive operating environment.

“More importantly, is the favourable outlook of the market owing to the ongoing regulatory policy direction in terms of sector-wide process automation, market deepening measures, and a sustainable legal framework improvement,” the report stated.