The Nigerian insurance sector recorded a significant milestone in the first three quarters of 2024, generating approximately N253.6 billion from motor insurance, according to data obtained by The PUNCH. This figure represents about 10.32% of the industry’s total Gross Written Premium (GWP) of N2.46 trillion during the same period, as revealed in quarterly reports from the National Insurance Commission (NAICOM).
Motor insurance, which provides coverage for vehicle owners against accidents, theft, loss, or damage, has become a key driver of growth in the insurance industry. Policies under this category include third-party insurance, comprehensive insurance, and collision insurance. Third-party insurance covers damages caused to others but not to the policyholder’s own vehicle, while comprehensive insurance offers broader protection, including damages to both third parties and the insured’s vehicle. Collision insurance, on the other hand, covers accidents or damages resulting from collisions with other vehicles or objects.
A detailed analysis of the data shows a steady increase in motor insurance GWP from the first to the third quarter of 2024. In the first quarter, the sector recorded N48.8 billion, which surged by 78.07% to N86.9 billion in the second quarter. By the third quarter, motor insurance GWP rose further to N117.9 billion, marking a 35.67% increase compared to the second quarter.
The NAICOM report also highlighted improvements in claims management within the industry. The average net claims settlement ratio for the three quarters stood at 95%, with the first quarter recording the highest ratio at 97.40%. By the third quarter, gross claims reported reached N564.1 billion, accounting for 48.1% of the total premiums generated during the period. This improvement in claims management has been identified as a key factor driving the sector’s expansion.
The steady growth in motor insurance premiums underscores the increasing demand for vehicle insurance in Nigeria, as well as the industry’s efforts to enhance service delivery and claims settlement efficiency. With the sector poised for further growth, stakeholders are optimistic about the potential for continued expansion in the coming quarters.
