The insurance industry has recorded a 61 per cent year-on-year increase in the third quarter of 2024, reaching N1.2 trillion.

Kunle Ahmed, chairman of the Nigerian Insurance Association, disclosed this during a quarterly news conference on the performance of the industry by the association in Lagos.

Mr Ahmed said this growth was largely driven by the non-life insurance sector.

He said, “The 2024 performance of the insurance industry revealed a complex landscape marked by significant growth in certain areas alongside persistent and emerging challenges.

“While specific data for the entire year of 2024 is still being consolidated, the trends and available reports offer valuable insights. Available data up to the end of the third quarter of 2024 indicated robust growth in gross premiums.”

He added, “The report from our regulator noted a 61 per cent year-on-year increase in the third quarter of 2024, reaching N1.2 trillion. This growth was largely driven by the non-life insurance sector, which constituted approximately 69 per cent of the total premium income.”

Mr Ahmed noted that within the non-life business, fire, oil and gas insurance were significant contributors to the increased revenue.

The chairman explained that all non-life business products showed robust quarter-on-quarter growth.

He said the life insurance business also experienced substantial growth, with the report indicating a 45 per cent quarter-on-quarter increase within the period under review.

He noted that the group life emerged as the largest premium-generating component within the life segment.

“In spite of a rise in the net loss ratio in the second quarter of 2024 compared to the first quarter of 2024, the Nigerian insurance market remained profitable overall.

“The total assets reached ₦3.9 trillion by the end of September 2024, demonstrating a healthy expansion,” he explained.

On the impact of the police enforcement on third-party motor insurance, Mr Ahmed said the enforcement process had generated significant effects on the insurance industry and policyholders in Nigeria.

He said that the most immediate and significant impact was the substantial increase in the purchase of third-party motor insurance policies.

He explained that the surge in demand directly translated to higher premium income and overall revenue growth for insurance companies.

According to him, available reports indicate a significant increase in the uptake, as the trend is expected to be amplified by continued enforcement in 2025 and beyond.

“The increase in uptake implies an increase in the volume of claims and overall potential liabilities of insurance companies. This will necessitate that insurance companies enhance their claims processing efficiency and customer service capabilities to handle the increased workload and ensure policyholder satisfaction.

“Stricter checks by the police make the use of fake or invalid insurance certificates riskier. This enforcement, coupled with the use of the Nigeria Insurance Industry Database, is expected to reduce the prevalence of fraudulent policies.

“Overall, the stricter enforcement of third-party motor insurance in Nigeria is a crucial step towards ensuring financial protection for road accident victims and improving legal compliance,” Mr Ahmed said.

The chairman noted that policyholders needed 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.

He said the National Insurance Commission had always advised the populace on verifying insurers on their website. 

(NAN)