The insured claimed N318.2 billion from insurance companies in the last quarter of 2022.
The National Insurance Commission, NAICOM, an industry regulator, disclosed in Lagos on Thursday that the claims represented a 31.2% Quarter-on-Quarter growth from the previous quarter.
It attributed the growth in the industry to rising customer awareness, market expansion, and consumer confidence.
The life premium represented 42.6% of the total N726.2 billion premium posted at the end of the quarter.
NAICOM noted that the non-life insurance segment indicated that motor insurance led the result of claims settlement vis-a-vis gross claims at 92.3%, signifying a nine-point improvement against its prior position.
According to the Commission, fire insurance is the least with 46.3%, the only class below average proportion.
The Commission reported that all other portfolios recorded a proportion above the average of paid claims against gross claims reported.
They are General accident insurance at 80.7%, Oil and Gas at 51.6%, Marine and Aviation at 74.4%, and miscellaneous insurance at 86.1%.
It stated that life insurance reported two points lower compared to the 95 percent of net claims paid, compared to total claims reported in the corresponding period of 2021.
“The data revealed an impressive development concerning claims settlement in non-life business with a record of 63.7% compared to the previous period of 46.9%.
“It, therefore, indicates that despite operational challenges, the claims settlement experience of insurers is improving,” it stated.
NAICOM added that the market recorded about 47.2% net loss ratio during the period under review, suggesting a workable, cost-effective and profitable business in the industry.
It attributed the performance mainly to the life business sustaining its positive course at 46.5% net loss ratio in the current period. The non-life portfolio recorded about 48.1% during the same period.
“The life premium represented 42.6% of the total N726.2 billion premium posted as at the end of the quarter. The industry also reported a total claims payment of N318.2 billion to policyholders within the same period, covering life and non-life segments”, NAICOM stated.
The National Insurance Commission, NAICOM, an industry regulator, disclosed in Lagos on Thursday that the claims represented a 31.2% Quarter-on-Quarter growth from the previous quarter.
It attributed the growth in the industry to rising customer awareness, market expansion and consumer confidence.
The life premium represented 42.6% of the total N726.2 billion premium posted at the end of the quarter.
NAICOM noted that the non-life insurance segment indicated that motor insurance led the result of claims settlement vis-a-vis gross claims at 92.3%, signifying a nine-point improvement against its prior position.
According to the Commission, fire insurance is the least with 46.3%, the only class below average proportion.
The Commission reported that all other portfolios recorded a proportion above the average of paid claims against gross claims reported.
They are General accident insurance at 80.7%, Oil and Gas at 51.6%, Marine and Aviation at 74.4%, and miscellaneous insurance at 86.1%.
It stated that life insurance reported two points lower compared to the 95 percent of net claims paid, compared to total claims reported in the corresponding period of 2021.
“The data revealed an impressive development concerning claims settlement in non-life business with a record of 63.7% compared to the previous period of 46.9%.
“It, therefore, indicates that despite operational challenges, the claims settlement experience of insurers is improving,” it stated.
NAICOM added that the market recorded about 47.2% net loss ratio during the period under review, suggesting a workable, cost-effective, and profitable business in the industry.
It attributed the performance mainly to the life business sustaining its positive course at 46.5% net loss ratio in the current period. The non-life portfolio recorded about 48.1% during the same period.
“The life premium represented 42.6% of the total N726.2 billion premium posted as at the end of the quarter. The industry also reported a total claims payment of N318.2 billion to policyholders within the same period, covering life and non-life segments”, NAICOM stated.
