10 Non-life insurers contribute 64.2% in Q3 2022

10 underwriters in the Non-Life section of the industry contributed 64.2 per cent of the gross premiums income in the third quarter 2022.

This is an increase of 60.8 per cent recorded in the same quarter last year.

The Synopsis of the Insurance Market Third Quarter 2022 released by the National Insurance Commission (NAICOM) also shows that top three Insurers contributed 49.3 per cent of all premiums generated during the period compared to 45.4 per cent  recorded in the previous period.

In the same vein, the Non-life business had a record of 0.2 per cent of its market share contributed by the least three of the underwriters, same as in the prior period of second quarter of the year while about 31 percent of the Non-life gross premium was contributed by its top three Insurers, up from about 27 percent it recorded in the previous quarter.

In the overall analysis, the market maintained a fairly balanced concentration especially in the Non-Life section of the industry.

From the ongoing, the market Statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth, retention, claims management experience and profitability, at levels of which the industry could be ruled as
profitable, sound and stable.

NAICOM also said that the on-going digitisation and market deepening measures of the Commission, the outlook remains strongly positive.

The market concentration as shaped by competition and other factors in the industry revealed a rather similar scenario compared to the second quarter of 2022, indicating that the market control setting has not significantly changed in the last three months.

In the overall gross premium of N532.7 billion generated Ithe third quarter 2022, claims settlement took a direct reflection of the market premium retention as Motor Insurance retained its lead, posting a claims settlement ratio 91 percent
This is followed by Miscellaneous insurances reporting about eighty one per cent as paid claims ratio to all reported claims during the period while General Accident 74.4 per cent.

Marine & Aviation 74.3 percent and Fire Insurance 59.6 percent trailed in that order.
The Oil & Gas business stood out as the most improved portfolio in this respect at 65.3 percent of claims settlement ratio, an increase of 41 points compared to its position of 23.9 percent recorded in the corresponding period of 2021.
The experience in Oil & Gas corner of the market with respect to claims settlement could be attributable to the increasing capital and, underwriters’ growing confidence and dexterity in the market.

Similarly, the claims settlement ratio of the life business stood at 95 percent while the aggregate industry average was recorded at 85.4 per cent during the quarter.
In the Life business segment, the least three companies recorded a proportional contribution of about 0.1 percent, same