Lagos: The insurance industry has recorded a 61 percent year-on-year increase in the third quarter (Q3) of 2024, reaching a total of N1.2 trillion in gross premiums. Mr. Kunle Ahmed, Chairman of the Nigerian Insurance Association (NIA), announced these findings during a quarterly news conference held in Lagos, focusing on the industry’s performance.
According to News Agency of Nigeria, Ahmed highlighted that the growth was primarily driven by the non-life insurance sector, which comprised approximately 69 percent of the total premium income. He noted that the 2024 performance of the insurance industry has shown a complex landscape characterized by substantial growth in specific areas, despite ongoing and emerging challenges. The available data up to the end of Q3 2024 demonstrated robust growth in gross premiums, with fire, oil, and gas insurance making significant contributions within the non-life business category.
Ahmed further explained that all non-life business products exhibited strong quarter-on-qua
rter growth. The life insurance segment also experienced notable growth, showing a 45 percent increase within the same period. Group Life emerged as the largest premium-generating component in the life segment. Despite a rise in the net loss ratio in the second quarter of 2024 compared to the first quarter, the Nigerian insurance market remained profitable. Total assets reached N3.9 trillion by the end of September 2024, indicating healthy expansion.
Regarding the impact of police enforcement on third-party motor insurance, Ahmed stated that the enforcement process has significantly affected the insurance industry and policyholders in Nigeria. The most immediate impact was the substantial increase in the purchase of third-party motor insurance policies, which directly resulted in higher premium income and revenue growth for insurance companies. Reports suggest a significant increase in uptake, and this trend is expected to continue with ongoing enforcement in 2025 and beyond.
Ahmed pointed out that the rise
in uptake implies an increase in the volume of claims and overall potential liabilities for insurance companies. This necessitates enhanced claims processing efficiency and customer service capabilities to manage the increased workload and ensure policyholder satisfaction. Stricter police checks make the use of fake or invalid insurance certificates riskier. This enforcement, along with the Nigeria Insurance Industry Database (NIID), is expected to reduce the incidence of fraudulent policies.
Overall, Ahmed emphasized that stricter enforcement of third-party motor insurance in Nigeria is essential for ensuring financial protection for road accident victims and improving legal compliance. He advised policyholders to be well-informed about the scope and benefits of their third-party insurance policies and how to verify their authenticity to avoid purchasing fake policies. The National Insurance Commission (NAICOM) has consistently urged the public to verify insurers via their website.