The Nigerian insurance sector is growing fast. As of the third quarter of 2024, it has recorded a 61% increase. This news came from Kunle Ahmed, Chairman of the Nigerian Insurers Association (NIA), during a press briefing in Lagos.
Big Growth in Non-Life and Life Insurance
The industry’s growth is coming from both non-life and life insurance policies.
Non-life insurance grew by 69%. This was driven by fire insurance and oil & gas policies.
Life insurance rose by 45%, thanks to more group life policies.
Ahmed said these numbers are from the first nine months of the year. Full-year data will be released once approved by the National Insurance Commission (NAICOM).
Industry Profits Are Rising
Insurance companies in Nigeria are also becoming more profitable. Ahmed said many firms listed on the Nigerian Stock Exchange have shown strong results. He added that even though some challenges remain, net assets have grown, and profits are improving.
Faster Claims with Digital Innovation
Ahmed spoke about plans to improve how claims are paid. He said insurers are ready to pay all valid claims and are working on faster, better systems.
The NIA is planning a Fintech pitch event to bring in new tech solutions. These will help insurers process claims quickly and reduce delays.
“We know innovation is costly for one company. But as an industry, we can create shared solutions,” he said.
Third-Party Insurance Enforcement Boosts Confidence
Since February 2024, the Nigerian Police have been checking for valid third-party motor insurance.
Ahmed said this move is good for drivers and the economy. A third-party policy in Nigeria now offers up to ₦3 million in coverage. It also works across West Africa.
Since the enforcement began, more drivers have bought third-party policies. Ahmed believes this will help reduce conflicts after accidents, as drivers will rely on insurance instead of arguing.
The Future Looks Bright
Ahmed believes the growth will continue through the end of the year. With strong results, better claims systems, and rising trust, Nigeria’s insurance industry is ready to grow even more.
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