The insurance sector in Nigeria, one of the largest economies in Africa, has shown remarkable resilience and growth despite the challenges posed by the COVID-19 pandemic and other factors.
According to a report by BusinessDay, a Nigerian business news website, the top 10 insurance firms in the country recorded a combined gross premium income of N307.1 billion ($744 million) in 2022, a 22 percent increase from N252.6 billion ($613 million) in 2021.
Gross premium income is the total amount of money an insurance company receives from its customers for insurance coverage.
The report ranked the insurance firms based on their gross premium income, total assets, and profit after tax. AIICO Insurance, AXA Mansard, and Mutual Benefits Assurance emerged as the top three, with gross premium incomes of N85.3 billion ($207 million), N69.5 billion ($169 million) and N33.1 billion ($80 million) respectively.
The other firms in the top 10 list are NEM Insurance, Cornerstone Insurance, Coronation Insurance, LASACO Assurance, Linkage Assurance, Consolidated Hallmark Insurance, and Prestige Assurance.
The report attributed the impressive performance of the insurance sector to several factors, such as the increased demand for insurance products amid the pandemic, the introduction of new products and services, the adoption of digital platforms and channels, and the implementation of regulatory reforms by the National Insurance Commission (NAICOM).
However, the report also noted that the sector still faces some challenges that limit its growth potential, such as low public awareness and trust, low penetration and density, high operating costs and claims expenses, and regulatory uncertainties and compliance issues.
The report quoted Ganiyu Musa, chairman of the Nigerian Insurers Association (NIA), an industry body, saying that the Nigerian insurance sector is at a turning point and needs to address some fundamental issues to achieve its full potential.
He said the NIA works with NAICOM and other stakeholders to promote insurance awareness and education, enhance customer service and satisfaction, and foster collaboration and synergy within the sector.
The report also compared the Nigerian insurance sector with other African countries, such as Kenya, Ghana, and South Africa, with more developed and diversified insurance markets and offerings.
According to a report by McKinsey & Company, a global consulting firm, Africa’s insurance industry could grow by $60 billion by 2025 if it can overcome its challenges and tap into its opportunities.
Source: Business Day
