The National Insurance Commission (NAICOM) has said that the gross claims paid by the insurance companies in the country rose by 0.2 percent in the first half of 2022.
The commission announced the development via a ‘Bulletin of the insurance market performance’ report for the first half of 2022 financial period.
The report stated that, “The growth of the gross claims reported was 0.2 per cent during the quarter compared to the corresponding period of 2021. The industry statistics for gross claims in Q2 of 2022 stood at N174.8bn, representing 47.3 per cent of all premiums generated during the period.
“This occasion reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the commission. The net claims paid on the other hand stood at about N148.2bn, signifying an 84.8 per cent of all gross claims reported during the period.”
The report also stated that the life insurance business reported a near perfect point of about 88.9 per cent claims settlement as against the reported claims, while non-life segment stood at about 76.8 per cent.
It maintained that the percentage of incurred claims as against reported mirrored the market retention view during the period.
Motor insurance retained its lead, posting a claims settlement ratio of 92 per cent. Progress was, however, more noticeable in the oil & gas sector with an above 85.7 per cent of claims settlement ratio, an increase of some 42 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.
Miscellaneous insurance also posted about 61.9 per cent, higher than 44 per cent paid claims ratio, compared to its corresponding period of 2021; while general accident (75 per cent), fire (76.2 per cent) and, aviation & marine (61.9 per cent) followed in that order.
NAICOM also disclosed that the gross premium income in the second quarter of 2022 stood at N369.2.8bn, a notable performance as mapped in Table ,1 portraying the premium contribution by each class of the business.
The sector recorded an increased rate of growth at about 11.9 per cent quarter on quarter with a total asset of about N2.3 trillion.
The industry’s financial position revealed a total of N1.2tn in assets of non-life business while the life business stood at about N1.1tn.
This article was originally published on OsunDaily News
