October 11, 2022
Following improved underwriting capacity, insurance companies paid 47.3 per cent of all premiums generated as claims in the second quarter of 2022, Q2’22.
This shows a moderate improvement from Q1’22 where 48.7 per cent of all premiums generated were paid as claims.
Accordingly, gross premium income increased by 64.9 per cent to N369.2 billion in Q2’22 from N223.8 billion recorded in Q1’22.
Claims payment went up by 60.9 per cent to N174.8 billion in Q2’22 from N108.9 billion in Q1’22.
According to the National Insurance Commission, NAICOM, in its “Bulletin of the Insurance Market, Second Quarter 2022 report” released over the weekend, the decline in claims statistics reflects the professional underwriting capacity of the industry.
The report stated: “The industry statistics for gross claims in Q2 of 2022 stood at N174.8 billion, representing 47.3 per cent of all premiums generated during the period.
“This development reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the Commission
“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.”
Similarly, 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 2021.
The report noted that assets of non-life business stood at N1.2 trillion while the life business assets stood at N1.1trillion, translating to N2.3 trillion cumulatively.
