Policyholders claimed N318.2b in Q4 2022, says NAICOM

The National Insurance Commission (NAICOM) has said that policyholders in the insurance industry have claimed N318.2 billion as claims of their insurance policies as of the fourth quarter of 2022.

The data was gleaned from the market statistics of the Fourth Quarter 2022 report released by NAICOM and made available to The Guardian. The report revealed that there was remarkable growth in the Insurance Claims Component, which stood at N318.2 billion representing 31.2 per cent quarter-on-quarter (QoQ) during the fourth quarter review.

The Commission said the industry recorded the feat as a result of growing awareness and market expansion as well as consumer confidence. In a similar blueprint, it also reported that the net claims paid were reported at N244.3 billion, growing at about eighteen per cent (17.9%) quarter-on-quarter (QoQ) during the same period.

The Commission stressed that insight into the non-life segment showed that motor insurance led with regards to claims settlement vis a vis gross claims reported at about 92.3 per cent signifying a nine points improvement as against its prior records.

“Fire insurance was the least at about 46 per cent, the only class below average proportion while all other portfolios like general accident insurance (80.7%), oil & gas (51.6%), marine and aviation (74.4%), and miscellaneous insurances (86.1%) recorded a proportion above the average, of paid claims against gross claims reported.

The report continues, “Life Insurance business on the other hand, reported two points less in comparison to the position held in the prior period of ninety-five per cent of net claims paid compared to total claims reported during the same period of 2021.

“The data reveals an impressive development with regards to claims settlement in the non-life business with a record of about sixty-four per cent compared to the previous period (46.9%). It, therefore, indicates that despite operational challenges, the claims settlement experience of Insurers is improving.

Statistics of the insurance market performance for the fourth quarter 2022 revealed consistent growth in terms of premium generation, and quality improvements in essential indicators including claims settlement and profitability.