The National Insurance Commission (NAICOM) has revealed that insurance companies paid out 92.3% of reported motor insurance claims in the third quarter of 2024, highlighting significant improvements in claims management across the industry. This was disclosed in the Synopsis of the Insurance Market in Third Quarter 2024, which outlined the sector’s robust performance amid macroeconomic challenges.
According to the report, the insurance industry reported gross claims of N564.1 billion in Q3 2024, representing 48.1% of the total premiums generated during the period. This growth was attributed to enhanced claims management practices, which have driven expansion and efficiency in the sector.
The Life Insurance segment recorded an impressive claims settlement ratio of 81.6%, while the Non-Life segment achieved 73.6%. Motor insurance led the way with an outstanding claims payout ratio of 92.3%, followed by miscellaneous insurance at 88.9%. General accident and fire insurance businesses also performed well, recording 86.3% and 75.1% respectively. The oil and gas sector, though lower at 63.7%, showed significant progress compared to the 43.1% recorded in the same period last year.
The industry’s total assets grew by 5.1% year-on-year, reaching N3.88 trillion in Q3 2024, up from N2.81 trillion in the corresponding period of the previous year. Non-Life business accounted for N2.34 trillion of the total assets, while the Life business contributed N1.54 trillion.
NAICOM emphasized the sector’s resilience, noting that it sustained a year-on-year growth trajectory of 60.9% and a quarter-on-quarter growth of 44.3%. Gross premium written in Q3 2024 stood at N1.17 trillion, a milestone attributed to the Commission’s consistent policy initiatives and the market’s ability to withstand economic pressures.
The Non-Life sector dominated the market, accounting for 68.9% of the total premium volume at N808.4 billion, while the Life segment contributed 31.1%.
NAICOM’s report underscores the insurance industry’s strong performance and adaptability, with motor insurance claims payout ratios reaching an all-time high. The sector’s growth and improved claims management reflect its critical role in Nigeria’s economy, even in the face of ongoing macroeconomic challenges.
