The Insurance Industry’s Gross Premium Income (GPI) grew by 15 per cent year-on-year to N592.3 billion in the financial year ended December 31, 2020, estimates by Agusto & Co have shown.
Agusto& Co, a rating agency in its Insurance Industry Report, said in the last three years, the industry has evolved on the back of the on-going recapitalisation, expansion of distribution channels and COVID-19 pandemic, among others.
It stated that in the near term, the impact of the #EndSARS protest, entry of new players and the financial inclusion campaign, would change the structure of the Industry, as the agency believes that the impact of the on-going exercise on the ownership structure, number of operators and investment structure, will linger until the medium term.
According to the rating agency, technological innovation in product distribution induced by the pandemic, regulatory-backed opportunities, including the digitisation of marine insurance certificates and an increasing awareness of the benefits of insurance, are some of the GPI growth drivers during the 2020 financial year.
Meanwhile, the industry regulator, the National Insurance Commission (NAICOM), in its 2019 Market Statistical Publication, indicated that the industry in 2019 grew at about 19.2 per cent, representing a five-point progression relative to its growth in the prior year, posting over N508 billion as against N426 billion production made in 2018.
According to the Commission, the non-life sector accounted for 55.4 per cent, albeit lower than its share in the preceding period of 57.6 per cent and at a slower pace of 14.6 per cent, while the life sector in a record surge of a growth rate at 25.5 per cent, accounted for about 44.6 per cent of the gross premium income generated during the period.
“The growth of the life sector is largely led by individual life business and the growing popularity of annuity business.
“The relative significance of the Life sector in the market continue to grow as evidenced by its evolution from a 31.4 per cent in 2015 and, consistently all through to its share status in 2019,”NAICOM noted.
– The Nation