The Nigerian insurance industry recorded strong financial growth in the 2024 financial year, with gross written premium (GWP) rising by 56 per cent to ₦1.56 trillion, up from ₦1.00 trillion in the previous year. The growth was driven mainly by robust performance in the non-life insurance segment.
This was revealed by the Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, during the 54th Annual General Meeting of the association, held at the Insurers House in Victoria Island, Lagos. Ahmed said the year witnessed notable progress shaped by regulatory changes, economic factors, and increased activity across key market segments.
According to him, “Available data indicated that the industry recorded a gross written premium of ₦1.56 trillion, which is a 56 per cent increase from ₦1.003 trillion reported in 2023. Non-life business was the major contributor, generating ₦1.1 trillion, while life insurance brought in ₦470 billion.”
He further disclosed that the industry’s total assets grew significantly by 46.1 per cent to ₦3.9 trillion in 2024, compared to ₦2.67 trillion in 2023. The market capitalisation of the insurance sector also rose to ₦1.2 trillion, representing a 41 per cent increase from the ₦850 billion reported in 2022.
Ahmed said insurance firms paid out claims worth ₦622 billion during the review period. The non-life segment accounted for ₦437 billion, while the life insurance segment paid out ₦185 billion. He noted that the increase in claims payout showed the industry’s growing capacity to meet policyholders’ obligations.
Within the non-life business, fire insurance and oil and gas policies were the top revenue contributors. All non-life product categories showed strong quarter-on-quarter growth, indicating improved underwriting performance across the sector. The group life insurance class remained the top contributor in the life segment, which also recorded improved activity during the year.
Despite the financial improvement, Ahmed acknowledged that insurance penetration in Nigeria remains low. He said stakeholders must continue to push for better public awareness, more compliance with compulsory insurance policies, and enhancements in claims processing to win consumer trust.
To address these challenges, he highlighted some of the efforts made by the association and its partners. These included the enforcement of mandatory insurance policies, improved efficiency in the claims payment system, and the review and implementation of enabling laws guiding insurance practice in Nigeria.
Another major achievement recorded during the year was the successful launch of the Automatic ECOWAS Brown Card Scheme, which allows motorists to enjoy uninterrupted insurance cover while driving across ECOWAS member countries.
“Our special thanks go to the Commissioner for Insurance, Mr Olusegun Omosehin, and the entire Governing Council for their support in making the automatic ECOWAS Brown Card a reality,” Ahmed said.
He added that more motor insurance companies are now issuing electronic insurance certificates through the Nigerian Insurance Industry Database (NIID) and the Nigerian Insurance Industry Platform. This digital shift, he said, has made it easier for customers to access insurance services and has strengthened the integrity of insurance data in the country.
Ahmed reiterated that the NIA is working closely with the Nigerian National Bureau to ensure effective implementation of the Brown Card Scheme, which he described as a significant step towards regional integration and ease of doing business within West Africa.
Looking ahead, the NIA Chairman said the association is committed to supporting regulatory reforms, fostering partnerships, and encouraging the development of innovative insurance products that meet the needs of Nigerians.
“As we continue to navigate emerging challenges and opportunities, the Association remains dedicated to deepening relationships, fostering mutual understanding, and driving collective progress for the benefit of the entire Nigerian insurance ecosystem,” he said.
Ahmed concluded by reaffirming the association’s resolve to promote professionalism, customer satisfaction, and financial inclusion in the Nigerian insurance industry.
