Nigerian Insurance Sector Experiences 61% Growth in 2024, with Focus on Claims Innovation and Expansion
The Nigerian insurance industry has witnessed an impressive 61% growth as of the third quarter of 2024, as reported by the Nigerian Insurance Association (NIA). Kunle Ahmed, the NIA Chairman, revealed this growth during a quarterly briefing, highlighting the strong performance of both life and non-life insurance sectors. The non-life business saw a significant 69% increase, driven by fire and oil & gas policies, while the life insurance segment grew by 45%, spurred by the expansion of group life policies.
Despite the challenges surrounding net profitability, the industry has also experienced a notable increase in net assets, indicating overall growth in financial stability. While full-year figures are still being finalized, industry stakeholders remain optimistic that this positive trend will continue through the end of 2024. Companies, particularly those listed on the Nigerian Stock Exchange, are reporting strong profitability, signaling a vibrant and expanding market.
In addition to robust growth, the NIA is emphasizing the importance of timely claims processing, with a focus on introducing technological innovations to streamline claims procedures. Ahmed disclosed plans for a fintech pitch to improve shared solutions across the industry, making claims handling more efficient and affordable. Insurance companies are committed to paying valid claims and reducing delays, reassuring the public of their readiness to meet financial responsibilities.
The enforcement of third-party motor insurance, which began in February 2024, has also been a significant development for the industry. This enforcement is expected to benefit policyholders through increased protection and a smoother claims process. Ahmed noted that there has been a slight uptick in third-party policies and a cultural shift toward more efficient exchanges of policy documents, as opposed to physical confrontations, further improving the relationship between motorists and insurers.
Source: Punch