Insurance Industry premium hits N1.6trn in FY2024

Nigerian Insurance Industry has grown its gross written premium income to N1.562 trillion at the end of 2024 financial year, indicating a 56 percent growth from N1.003 trillion in 2023.

The figure announced during the 54th Annual General Meeting of the Nigerian Insurers Association (NIA) held in Lagos Thursday also shows that the non-life business accounted for N1.1 trillion, while life business generated N470 billion.

Kunle Ahmed, chairman of the NIA who disclosed this during the meeting said the industry paid net claims amounting to N622 billion in full-year 2024, with non-life segment accounting for N437 billion and the life segment N185 billion.

The full year result also shows that the industry’s total assets expanded significantly to N3.9 trillion, a 46.1 percent rise from N2.67 trillion in 2023, while market capitalization also grew substantially, reaching N1.2 trillion, a 41 percent increase from N850 billion in 2022.

Within the non-life sector, fire, oil and gas insurance lines were key drivers of revenue growth, with all non-life products demonstrating strong quarter-on-quarter increases.

“The life insurance segment also saw substantial growth with group life insurance emerging as the largest premium generator. Despite this growth, insurance penetration remains low, with efforts to improve penetration tied to addressing the enforcement of compulsory insurance policies, improvement in claims payment process and the consolidation of the insurance enabling laws, Ahmed said.

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The NIA chairman noted that the National Insurance Commission (NAICOM) continued to enforce governance, risk, and compliance measures, ensuring adherence to industry standards.

Key regulatory highlights that have impacted the sector he noted includes stricter solvency and reserve requirements for insurers, enhanced consumer protection policies to boost trust in the sector, and encouragement of digital transformation to improve accessibility and efficiency.

Ahmed said the Association remains committed to supporting, collaborating, and working closely with NAICOM and other key stakeholders in the financial services sector.

“Our focus is on advancing the insurance industry by developing innovative products tailored to the needs of the financially excluded individuals and enforcing compulsory insurance policies to drive industry growth and development.”

On the review and consolidation of the insurance industry Reform Bill 2024, Ahmed said NIA were also represented at the public hearing, expressing optimism about the impact of the bill on the sector.

“The bill introduces significant changes, including a risk-based regulatory framework, stricter licensing requirements, and higher capital thresholds for insurance companies.”

“The bill aims to modernize Nigeria’s insurance industry by improving policyholder protection, enhancing financial stability, and reducing reliance on foreign reinsurance. It also seeks to strengthen corporate governance and ensure that only qualified individuals operate within the sector.”

He informed that the bill has passed legislative stages and is now awaiting presidential assent to become law. If enacted, it is expected to significantly boost the industry’s contribution to Nigeria’s GDP and overall economic development.

“As we reflect on the achievements and challenges of the past year, we reaffirm our commitment to driving progress and innovation within the Nigerian insurance industry. The strides we have made through regulatory reforms, market expansion, and strengthened collaborations underscore our dedication to building a resilient, inclusive, and forward-looking sector.”

Our journey is one of continuous evolution, and with the unwavering support of our members and stakeholders, we will remain steadfast in our pursuit of excellence. Together, we will enhance industry standards, deepen financial inclusion, and foster a culture of integrity and professionalism that will shape the future of Nigerian insurance, Ahemed said.