Nigeria: Insurance Sector Records 35.7% Premium Growth in 10 Years

The insurance sector has in the past ten years achieved an average growth rate of 35.07 per cent in both life and non-life classes of business.

A breakdown of this showed that life business recorded a higher growth rate of 27.64 per cent, while non-life grew by 7.43 per cent in the last 10 years.

Available statistics from the latest edition of the Nigeria Insurers Association’s annual digest showed that life business witnessed highest increase in premium of 85.8 per cent in 2008m, but recorded poor performance in 2016 when it recorded -0.50 per cent increase in premium generation.

However, in 2011, life business premium grew by 37.21 per cent followed by 2014, when premium from life business grew by 35.02 per cent. In 2012, premium from life business grew by 28.25 per cent while in 2017, it grew by 27.59 per cent.

For the non-life segment, the insurance sector witnessed highest increase in premium in 2008, when the sector’s premium grew by 22.1 per cent. This was followed by 2009, when the industry’s premium in non-life business grew by 19.6 per cent and was closely followed by 2011 and 2012 when it increased by 11.80 per cent and 11.63 per cent respectively.

Nevertheless, the sector recorded the worst performance in premium generation in 2015 and 2014 when growth stood at -3.50 per cent and -1.31 per cent respectively.

In motor insurance business segment, another class of non-life insurance business, the sector recorded a net written premium of N33.859 billion in 2017.

Among the underwriting firms that participated in this class of business in 2017, NEM Insurance earned the highest premium of N4.370 billion. NEM was closely followed by Axa Mansard Insurance which recorded N3.080 billion and Leadway Assurance – N3.071 billion.

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The least premium earner in the motor insurance class of business for the period was the Nigerian Agricultural Insurance Corporation(NAIC) which earned N49.351 million premium. – Thisday

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