The Nigerian Insurance Association has revealed that the sector recorded approximately 61 per cent growth as of the third quarter of 2024.
This was disclosed by the Chairman of the NIA, Kunle Ahmed, during the quarterly briefing on the performance of the insurance industry held at the Insurers’ House on Tuesday.
The Nigerian Insurers Association, established in 1971, is the umbrella body for all insurance and reinsurance companies in Nigeria. It serves as a forum for members to engage with one another and with the government on issues affecting the insurance business.
Speaking at the briefing, Ahmed said, “You might be curious about how our industry has performed in 2024. The industry has grown by 61 per cent so far. The non-life business grew by 69 per cent, driven largely by fire and oil and gas policies. The life business grew by 45 per cent, primarily due to growth in group life policies.
“Now, let me clarify that this data is as of Q3 2024; full-year figures are still being compiled. Many of our members have applied to NAICOM for approval of their full-year accounts. Some have received provisional approval, while others are still in the process. So, the figures we’re sharing reflect performance up to Q3 2024.
But even with that, I believe the growth we’ve seen will be sustained through year-end, giving us a vibrant and expanding insurance market in Nigeria.”
He added that beyond growth in Gross Written Premium, the industry has also expanded its net assets. While net profitability remains a challenge, Ahmed noted that companies overall are more profitable.
“Various factors contribute to this, and they differ from one company to another. However, the signs we see from Q3 results — especially from listed firms on the Nigerian Stock Exchange — indicate strong profitability.”
On the regulator’s focus on prompt claims payment, Ahmed said,
“Insurance companies are prepared and willing to pay valid claims. We plan to introduce innovations in claims processing to reduce delays and improve timely payment.”
He disclosed that the association’s innovation would be supported by a Fintech pitch organised by its Committee on Digital Innovation.
“Our Committee on Digital Innovation is organising a pitch involving Fintechs. One of our immediate priorities is claims processing. We’ve found that innovation can be costly for a single company, but as an industry, shared solutions are more affordable and impactful. So, please assure the public: insurance companies are ready and willing to meet all valid claims, whether third-party or comprehensive.”
Ahmed also addressed the enforcement of third-party motor insurance by the police, which began in February.
“The enforcement of third-party policy is a welcome development—for the economy, insurance companies, and policyholders.”
Explaining the impact, he said, “There are two aspects — what we’ve observed and what we expect. For the NIA, this enforcement benefits policyholders, who are entitled to compensation of up to N3 million for liability, injury, or damage to third-party property. Additionally, third-party policies issued in Nigeria provide cover across West Africa.
“We’ve seen a slight increase in third-party policies since the enforcement began, alongside a rise in liabilities for insurers who must set aside more reserves to meet future claims. Ultimately, we expect a cultural shift—where motorists involved in accidents exchange policy documents instead of resorting to physical confrontations, and claims are processed directly through insurance companies.”
