By Rosemary Iwunze

The Nigerian insurance industry grew gross written premium by 56 per cent in 2024 to N1.562 trillion from N1.003 trillion recorded in 2023.

Chairman of Nigerian Insurers Association, NIA, Mr. Kunle Ahmed, disclosed this at the association’s annual general meeting yesterday in Lagos.

According to Ahmed, the industry experienced notable developments, shaped by regulatory changes, economic conditions, and evolving market dynamics.

He stated: “Available data indicated robust growth in gross premiums. The industry reported a gross written premium of N1.562 trillion, a 56% increase over the N1.003 trillion recorded in 2023. Non-life business accounted for N1.1 trillion, while life business generated N470 billion.

“The industry’s total assets expanded significantly to N3.9 trillion, a 46.1% rise from N2.67 trillion in 2023. Market capitalization also grew substantially, reaching N1.2 trillion, a 41% increase from N850 billion in 2022. Net claims paid by the industry amounted to N622 billion, with the non-life segment accounting for N437 billion and the life segment for N185 billion.

“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 stated that the National Insurance Commission, NAICOM, continued to enforce governance, risk, and compliance measures, ensuring adherence to industry standards.

He noted that key regulatory highlights included 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.

“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,” Ahmed stated