Non-life accounts for 61.6% of last year's insurance premium, says report

Chuks Udo Okonta

A report by Researchmoz, world's renowed research agency has said the non-life segment of Nigerian Insurance Industry, accounted for 61.6 per cent of the premium underwritten by insurers, last year.

The agency which undertook in-depth market analysis, information and insights into the insurance industries in Nigeria, Gabon, Uganda, and Rwanda, said the Nigerian Insurance sector experienced strong growth over the review period, adding that the industry's growth was supported by relatively stable macro-economic conditions and a favorable investment climate.

It said: "The insurance industry in the country is very small, yet highly crowded and competitive. The key segment driving the overall industry is the non-life segment, which accounted for the largest share of 61.6 per cent of the industrys total written premium in 2012.

"The Nigerian insurance industry is regulated by the National Insurance Commission (NAICOM), which controls the operations performed by all entities including insurance companies, reinsurance companies, insurance brokers, loss adjusters and intermediaries.

"For low income earners, the Nigerian government has concertedly promoted micro insurance; however a poor understanding among consumers of the benefits of such products and inefficient distribution channels is limiting their spread."

The agency said the report provides a comprehensive analysis of the insurance industry, provides historical values for the industry for the reports 2008 to 2012 review period and forecast figures for the 2012 to 2017 forecast period.
"It offers a detailed analysis of the key segments and categories in the Nigerian insurance industry, along with industry forecasts until 2017
"It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions," it added.
The agency said the report also profiles top insurance companies in Nigeria and outlines the key regulations affecting them.