The Nigeria insurance industry revenue grew by 61 per cent year-on-year, YoY, to N1.2 trillion in the third quarter of 2024 from N742 billion recorded in the corresponding period of 2023.
The Chairman of Nigerian Insurers Association, NIA, Mr. Kunle Ahmed, disclosed this yesterday during the quarterly media briefing at the NIA office in Lagos.
Ahmed stated that the non life business grew by 69 per cent largely driven by fire and oil and gas business while the life business grew by 45 per cent driven largely by group life policy.
He said that the growth in Q3’24 will be sustained till the end of the year.
While commenting on other developing issues in the industry, Ahmed stated that insurance operators are working on mortality table for life insurance companies.
He stated: “We are working with industry stakeholders to develop mortality table. It is going to be used by life companies and we have been on this topic for quite a while. So we have revived that particular process and we are discussing with stakeholders, as well as with technical partners to ensure that we can put to bed the issue of mortality table.”
On the enforcement of the third party policy, he stated that the enforcement of the policy is largely to the benefit of policyholders.
He said: “Policyholders are entitled to be compensated for their liabilities in terms of injury or death to a third party which is unlimited. While on damage to thirty party property, they are entitled to be compensated to the tune of N3 million naira. But there is an addition to that, for all the third party policies issued in Nigeria, there is a cover for all policyholders that will be traveling across West Africa and they are also covered across West Africa. So those are the benefits from the third party policy.”
On the impact of the enforcement on the industry, he stated: “We have seen a slight growth in third party policies since the pronouncement, but consequently, there has been a slight growth in the liabilities of insurance companies in terms of providing more reserves to meet claims that will happen in the future.
“Overall the enforcement of third party is a positive development for the economy, for the insurance industry and policyholders. We are going to see a situation whereby motorists does not come down the car and fight when there are accidents. We expect to see a situation whereby you exchange your policy documents with any other party involved in a car accident and each person refer back to the insurance companies to pay claims.”