…as industry targets N1trn
Fourteen out of twenty-one insurance companies listed on the Nigerian bourse recorded a 32.95 percent growth in gross premium at the end of 2023 financial year.
The companies’ unaudited results submitted to the Nigerian Exchange Group (NGX) Limited for investors and shareholders show a cumulative gross premium of N460.02 billion at the end of 2023, as against N346.02 billion in 2022 recorded by the 14 firms.
The companies that contributed to the growth are AIICO Insurance Plc N110.12 billion from N88.28 billion in 2022; AXA Mansard Plc N83.36 billion as against N69.45 billion; NEM Insurance Plc N62.95 billion, as against N33.37 billion; Mutual Benefits Assurance Plc N40.26 billion, as against N33.12 billion; while Cornerstone Insurance Plc recorded N30.63 billion, from N22.25 billion in 2022.
Others are Coronation Insurance N26.42 billion in 2023, as against N19.84 billion in 2022; Lasaco Assurance N18.18 billion from N13.9 billion; Sovereign Trust Insurance Plc N19.50 billion from N15.23 billion; Linkage Assurance Plc N16.33 billion, from N12.98 billion; Consolidate Hallmark Insurance N16.21 billion, from N12.60 billion; Prestige Assurance Plc N14.84 billion, from N12.44 billion, among others.
The growth according to industry operators is driven by the increasing uptake of insurance policies by individuals and businesses alike, which has been supported by technology adoption by players in the market.
“The key drivers behind the growth in premiums are increased awareness of the benefits of insurance, the rise of digital platforms that make it easier to purchase insurance policies, and partnership arrangements being facilitated by companies to increase product distribution, says Chika Onwunali, managing partner, Premium Debate.
He said the trend is expected to continue in the coming years as more and more people start to appreciate the benefits of insurance, and the government is able to drive policies that will allow for a credit economy.
Ebelechukwu Nwachukwu, chairman, sub-publicity committee of Insurers Committee said at the review of the market for 2023, that insurance customers now have different platforms where they access varieties of products and this she noted is helping to drive penetration.
“Customers now have various platforms to reach their insurance companies more than ever before in 2023, and more of these channels will be introduced to boost insurance penetration and businesses in the coming years”.
Nwachukwu who is also the managing director/ CEO of Royal Exchange General Insurance Limited, (REGIC), noted that every underwriter is focused on creating consumer service excellence, where customer experience is a priority.
Nwachukwu noted that the Industry’s Transformation Roadmap includes proposals for increased awareness, enhanced market conduct, insurer partnerships with telecommunications and non-insurance channels, digitalisation improvements, and the deepening of the talent pool within the insurance sector.
Mayowa Adeduro, managing director/CEO, Tangerine Insurance said the insurance industry will see a lot of positive developments in the New Year, stating that the industry would have crossed the N1 trillion premium at the end of 2023, given the third-quarter performance, which was around N729 billion premium.
“On average, that shows about a 15 percent year-on-year increase in premium, and that is a positive development for the industry”
The Nigerian insurance industry’s total assets rose to N2.8 trillion at the end of Q3 2023, according to the National Insurance Commission (NAICOM).
NAICOM in its document titled, “Nigerian Insurance Market at a Glance shows that total assets for non-life stood at N1.74 trillion, while total assets for life business stood at N1.07 trillion.”
