Insurance Claims Payment Hits N174.8bn

The volume of gross claims paid out to insurance policyholders has recovered, hitting N174.8 billion in the first half of this year, H1’22.

This is up by 7.7 percent against the N162.3 billion recorded in the preceding half, H2’21.

This major indicator of soundness in the insurance sector had recorded a 6.9 percent decline from the N174.5 billion recorded in the first half of 2021, H1’21. 

Chart showing Volume of gross claims paid out to insurance policy holders

The decline represented a major reversal of the trend during the H2’21 period as the indicator had trended up consistently since 2020.

On full-year record gross claims skyrocketed by 36.2 per cent year-on-year, YoY, to N336.8 billion in 2021 from N247.2 billion recorded in 2020.

In 2020, gross claims grew by 9.8 per cent to N247.2 billion from N225.2 billion in 2019.

According to NAICOM, the increasing demand in claims by policyholders is reflective of the increasing enlightenment, market confidence from both the demand and supply sides, and the effects of regulatory measures meant to ensure claims settlement.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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