NAICOM fourth Q4 report indicates improvement in claims settlement experience of insurers

National Insurance Commission(NAICOM) recently presented some analytical insurance industry statistics, providing a clear picture of the performance of the industry for the fourth quarter of 2022, regarding claims settlement.
The insurance claims component of the report during the quarter showed that claims recorded during the period stood at N318.2billion representing a thirty-one (31.2%) per cent growth.
Possible attainment of this figure, according to the report, was as a result of growing awareness and market expansion, as well as consumer’s confidence. In a similar pattern, the net claims paid were reported at N244.3billion, growing at about eighteen per cent (17.9%) during the same period.
Insights into the Non-life segment shows that Motor Insurance led with regards to claims settlement vis a vis gross claims reported at about ninety-two (92.3%) per cent signifying a nine points improvement as against its prior position.
Fire Insurance was the least at about forty-six per cent (46.3%), the only class below average proportion. All other portfolios of General Accident Insurance (80.7%), Oil & Gas (51.6%), Marine & Aviation (74.4%), miscellaneous Insurances (86.1%) recorded a proportion above the average, of paid claims against gross claims reported.
Life Insurance business on the other hand reported two points less in comparison to the position held in the prior period of ninety-five (94.6%) per cent of net claims paid compared to total claims reported during the same period of 2021.
The fourth quarter report also provided the relative industry Gross and Net claims reported and paid in the non-life segment of the market. Motor Fire Gen. Accident Marine & Aviation Oil &Gas Misc. 94.0 52.3 66.4 55.7 35.0 51.8 55.0.
The data provided revealed an impressive development with regards to claims settlement in the non-life business with a record of about sixty-four (63.7%) per cent compared to the previous period (46.9%). It therefore, indicates that despite operational challenges, the claims settlement experience of Insurers is improving.

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