Customer interest, regulation raise annuity contribution to life premium- NAICOM
NAICOM
Customer interest, regulation raise annuity contribution to life premium- NAICOM
Nike Popoola
Increasing interest in annuity among pensioners is raising its contribution to the life insurance companies’ premium.
The National Insurance Commission disclosed this in its 2024 first quarter bulletin for the insurance industry.
“Annuity business however, stood at 28.9% of the total Life Insurance gross premium as it closes up to other components, owing to growing customer interest and confidence in tandem with the robust regulatory measures relating to the business,” the report said.
According to the report, the Oil & Gas sector remains the major driver of the Non-life insurance business in a significantly increasing trend in contrast to the contributions of the Marine and Motor insurance businesses which remained mostly flat or decreasing compared to the previous periods.
Life business on the other hand with a gross written premium of N143.8bn was majorly driven by the share of Group Life at 38.1% and individual Life business at 33.1% of all premiums recorded in the Life business segment of the Market.
NAICOM disclosed that gross premium income of the insurance companies in the first quarter of 2024 stood at N470.7bn, an impressive occasion attributable to the regulatory measures and market dynamics.
“Data collected during the period indicate a growth rate of 51.1%, year on year, a notable development compared to Nigeria’s real Gross Domestic Product (GDP) growth of 2.98% during the same period,” the bulletin stated.
