By Tony Obiechina, Abuja
Total claims paid by the Insurance industry in the last quarter of 2022 amounted to N318.2 billion, data released by the National Insurance Commission (NAICOM) has revealed.
According to a quarterly report of the Statistics Department of NAICOM made available in Abuja on Thursday, this figure represents 31.2 per cent growth against what was recorded in the corresponding year.
Giving reasons for the attainment, the report said it was “as a result of growing awareness and Market expansion as well as consumer’s confidence”.
Similarly, the report put the net claims paid at N244.3billion, growing at about eighteen per cent (17.9%) QoQ during the same period.
According to the report, “Insights into the Non-life segment shows that Motor Insurance led with regards to claims
settlement vis a vis gross claims reported at about ninety-two (92.3%) per cent signifying a nine points improvement as against its prior position. Fire Insurance was the least at about forty-six per cent (46.3%), the only class below average proportion.
“All other portfolios of General Accident Insurance (80.7%), Oil & Gas (51.6%), Marine & Aviation (74.4%), miscellaneous Insurances (86.1%) recorded a proportion above the average, of paid claims against gross claims reported. Life Insurance business on the other hand reported two points less in comparison to the position held in the prior period of ninety-five (94.6%) per cent of net claims paid compared to total claims reported during the same period of 2021”.
Meanwhile, the total Assets of the Insurance industry stood at N2.328 trillion in the fourth quarter, sustaining a positive growth that signifies expansion at the rate of two (2.4%) per cent, (QoQ) and at 4.4 per cent (YoY).
In the same quarterly report , this is relatively at a lower momentum compared to the prior period when the progression rate was recorded at about nine per cent (YoY), attributable to the wave of recapitalization drive recorded in that period.
It however, noted that the outlook of the market growth in terms of Assets remains positive, with the increasing measures of market deepening and development, recapitalization drive still ongoing, regulatory Insurance laws and provisions enshrined in the Insurance bill, being reviewed and, digitization of the supervisory wide processes would lead to the realization of the vast potentials in the insurance industry.
The data reveals an impressive development with regards to claims settlement in the non-life business with a record of about sixty-four (63.7%) per cent compared to the previous period (46.9%), indicating that despite operational challenges, the claims settlement experience of Insurers is improving.
