As the renewed drive to enhance insurance penetration in Nigeria begin to yield results, operators have applauded the sector’s performance in 20224 as they generated annual premium income of N1.562 trillion, an increase of 56 percent when compared with N1.03 trillion generated in 2023.
Penultimate week, the sector operators had predicted that the total premium income of the present year 2025 would hit N2 trillion.
The Chairman, Nigeria Insurers Association (NIA), Mr Kundera Ahmed, who stated this at the 54th Annual General Meeting (AGM) of the association held in Lagos said the sector achieved this despite the unique set of challenges and opportunities , inflationary pressure, foreign exchange fluctuation and evolving regulatory frameworks which tested the industry’s agility during the year.
He said through strategic innovations and collaboration, operators have remained steadfast in driving sustainable growth and market expansion.
According to Ahmed, out of the N1.562 trillion billion premium, Non-life business accounted for N1.1 trillion while life businesses generated N470.
“The sector’s assets during the year expanded significantly from N2.67 trillion in 2023 to N3.9 trillion signifying 46.1 percent growth.Market capitalisation also grew substantially from N850 billion in 2023 to N1.2 trillion showing 41 percent growth.Net claims paid by the industry amounted to N622 billion with the non-life segment accounting for N437 billion and life segment for N185 billion,” he informed.
According to him, within the non-life sector, fire, oil and gas insurance lines were key drivers of revenue growth, with all non- life products demonstrating strong quarter- on – quarter increases.
He said the life insurance segment also saw substantial growth with group life insurance emerging as the largest premium generator.
He said despite this growth, insurance penetration remained low, with efforts to improve penetration tied to addressing the enforcement of compulsory insurance policies, improvement in claims payment process and the consolidation of the insurance enabling laws.
On the activities of the NIA members during the year under review, Ahmed said they were geared towards the achievement of the goals of the association and four strategic imperatives of his tenure as NIA Chairman.
