Nigeria’s insurance sector recorded significant growth in 2024, generating an annual premium income of ₦1.562 trillion, representing a 56% increase from the ₦1.03 trillion reported in 2023. Industry operators have praised the sector’s performance, noting that recent efforts to deepen insurance penetration are beginning to yield tangible results.
Two weeks ago, stakeholders predicted that total premium income for 2025 could reach the ₦2 trillion milestone—an ambitious yet increasingly realistic target.
Speaking at the 54th Annual General Meeting of the Nigeria Insurers Association (NIA) held in Lagos, the Association’s Chairman, Mr. Kundera Ahmed, highlighted the industry’s resilience in the face of economic challenges such as inflation, foreign exchange volatility, and evolving regulatory frameworks.
“Despite a unique set of challenges and opportunities, we remained agile. Through strategic innovation and collaboration, we’ve continued to drive sustainable growth and expand market reach,” Ahmed said.
Breakdown of 2024 Insurance Sector Performance
According to Ahmed, the non-life insurance segment led the way with ₦1.1 trillion in premium income, while the life insurance segment generated ₦470 billion.
Key highlights include:
- Total industry assets grew from ₦2.67 trillion in 2023 to ₦3.9 trillion in 2024, a 46.1% increase
- Market capitalization surged from ₦850 billion to ₦1.2 trillion, marking a 41% rise
- Net claims paid totaled ₦622 billion, comprising:
- ₦437 billion from the non-life segment
- ₦185 billion from the life segment
Ahmed noted that fire, oil, and gas insurance lines were the primary revenue drivers within the non-life sector, with strong quarter-on-quarter growth across all non-life products. In the life segment, group life insurance emerged as the top contributor to premium income.
Penetration Still Low Despite Growth
While the numbers reflect a healthy and expanding sector, insurance penetration in Nigeria remains low. Ahmed emphasized that improving penetration depends on the effective enforcement of compulsory insurance policies, enhancing the claims payment process, and updating and consolidating insurance legislation to create a more enabling environment.
NIA Strategic Focus
Reviewing the activities of NIA members over the past year, Ahmed stated that they were aligned with the association’s strategic objectives and the four key imperatives of his tenure as NIA Chairman.
He concluded by reaffirming the industry’s commitment to further growth, innovation, and customer trust, as operators work toward a more inclusive and robust insurance market.
