The Chairman of Nigerian Insurance Association (NIA), Kunle Ahmed, has said the industry recorded a 61 per cent year-on-year increase in the third quarter (Q3) of 2024, reaching N1.2 trillion.
Ahmed, who disclosed this at the first quarter media briefing, explained that the 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.
The chairman disclosed that within the non-life business, Fire, Oil and Gas insurance were significant contributors to the increased revenue.
He said all non-life business products showed robust quarter-on-quarter growth.
According to him, the life insurance business also experienced substantial growth, with the report indicating a 45% quarter-on-quarter increase in Q3 2024 just as Group Life emerged as the largest premium-generating component within the life segment.
“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.
“The report from our regulator noted a 61 per cent year-on-year increase in the third quarter 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,” Ahmed said.
He said despite a rise in the net loss ratio in Q2 2024, compared to Q1 2024, the Nigerian insurance market remained profitable overall.
“The total assets reached N3.9 trillion by the end of September 2024, demonstrating a healthy expansion,” he said.
Ahmed said the enforcement of third-party motor insurance, which took effect in February, is already generating significant effects on both the insurance industry and policyholders in Nigeria.
He said the enforcement has led to a substantial increase in the purchase of third-party motor insurance policies and raising public awareness about the mandatory nature and benefits of third-party insurance.
“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,” the chairman said.
