The National Insurance Commission (NAICOM) has reported that the total assets of Nigeria’s insurance industry reached N2.67 trillion as of December 2023, with oil & gas and fire insurances emerging as the major drivers of growth. This information was contained in the fourth quarter (Q4) report of NAICOM, signed and delivered by the Statistics Department, Directorate of Research, Statistics & Publications of the Commission.
The report confirmed that the insurance industry sustained its positive market performance trend throughout the fourth quarter of 2023, achieving a milestone growth to close at N1.003 trillion. This represents approximately a 27 percent increase compared to the N790 billion recorded in 2022.
In terms of premium distribution, the non-life business segment dominated, accounting for 61.3 percent of all premiums written during the year, while the Life segment contributed 38.7 percent, valued at N388.1 billion. The report also highlighted a retention rate of about 87.7 percent for the Life business and approximately 54 percent for non-life, with the aggregate market average retention standing at 66.7 percent for the same period.
Major growth drivers in the non-life segment of the market were identified as Oil & Gas and Fire Insurances, contributing 27.3 percent and 24.1 percent respectively.
This significant growth in the insurance industry underscores the resilience and potential of the sector to contribute to Nigeria’s economic development. It reflects a positive trajectory for the industry, indicating increased confidence from stakeholders and investors.
As the insurance sector continues to expand, stakeholders are encouraged to explore opportunities for innovation and collaboration to further enhance the industry’s performance and contribute to the overall growth of the Nigerian economy.
