Insurance Sector Most Resilient, Records 65.6% in Five Years – NAICOM
Commissioner for Insurance/CEO NAICOM, Mr. Olorundare Sunday Thomas
The Nigerian Insurance industry despite its relative size has proven to be one of the most resilient and fastest-growing sectors in the Nigerian economy, the National Insurance Commission, the industry’s regulator, has said.
In the recent past especially, in the last five-years, it defied several economic recessions and the effects of the global COVID-19 pandemic, at a period when other sectors of the economy pointed south.
The market as measured by the industry gross premium income (GPI) has maintained steady growth throughout the period of 2017 to 2022.
This is evident by the growth of 65.6% for the period when it grew from about N372.4b in 2017 to N616.6b in 2021, YoY.
In his presentation at the one-day seminar organized by NAICOM for Insurance journalists in Lagos recently entitled “Performance Of The Nigerian Insurance Industry: 2017 To 2022 –Facts Behind The Figures,” Dr Umaru Baba of NAICOM’s Statistics Department examined the performance trajectory of the Commission.
Dr Umaru said “During the period, the rate of growth was put at 14.2% for 2017, 14.5% in 2018 and, 19.2%, 1.2% and 19.7% for 2019. 2020 and 2021 respectively.
He noted that the market recorded expansion in 2020 during the pandemic when the real GDP actually contracted (-1.9%) as was the case with most economies around the world
According to him, the industry’s remarkable experience is even better situated when pictured relative to other jurisdictions in similar and/or emerging insurance markets
Comparing the industry’s performance in Nigeria with that of its peers in other African Countries, Dr Umaru said “in 2021 for instance, while the annual rate of premium growth in Nigeria stood at 19.7%, it was 12% in Tanzania, 18.5% for Egypt and about 7.6% in the emerging Insurance market of Malaysia.”
He said “it is apparent that the trend maintained a steady rise except in 2020 of which it took a v-shaped recovery thereafter, rebounded to about 20% in 2021/”
In 2022, according to him, the GPI stood at N223.8 in the first quarter, which was 6% growth on YoY, and, N369.2b in the second quarter, indicating a 65% QoQ growth and at about 20% YoY.
“Apparently outpacing the real economic growth which grew at just about 3.5% during the same period major drivers during the period of 2017 – 2021 was the special risk insurance of Marine & Aviation at about one hundred and seventy (169.6%) percent, Miscellaneous Insurance at 98.4% and Life Insurances at 71.3%.
“In 2022 however, Fire Insurance (32.5%) and Life business (24.5%) recorded the highest rates at the end of H1 period, YoY, Dr. Umaru said.
