Fire insurance remains low despite increasing cases of inferno
Notwithstanding the growing rate of fire incidents across the country, especially in markets, the National Insurance Commission (NAICOM), insists that Fire insurance remains below average class proportion of inferno, recording about 46 per cent.
The latest released data formed part of the market statistics of the Fourth Quarter 2022 report released by NAICOM.
The report revealed that there was remarkable growth in the Insurance Claims Component, which stood at N318.2b representing 31.2 per cent quarter-on-quarter (QoQ) during the fourth quarter review.
According to the report, all other portfolios like general accident insurance (80.7 per cent), oil & gas (51.6 per cent), marine and aviation (74.4 per cent), and miscellaneous insurances (86.1 per cent) recorded a proportion above the average, of paid claims against gross claims reported.
Recall that the Federal Government had issued disturbing statistics about fire outbreaks in the country in 2021 and some in 2022.
Government particularly noted that no fewer than 136 lives and property worth N3tr were lost to fire incidents across the country in 2022, a situation many regarded as absurd.
It revealed that there were indeed huge losses last year as fire outbreaks ravaged different states, including Oyo, Lagos, Kano, Sokoto and Ogun states.
The NAICOM report explained that Life Insurance business on the other hand, reported two points less in comparison to the position held in the prior period of 95 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 64 per cent compared to the previous period (46.9 per cent). 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.
According to the commission, policyholders in the insurance industry have claimed N318.2b as claims of their insurance policies as of the fourth quarter of 2022.
It further 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 N244.3b, growing at about 18 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.