Leading insurance companies in Nigeria have faced a substantial 25.47 percent surge in net claims from customers during the first half of 2023, totaling N49.158 billion. This represents a notable increase compared to the N39.178 billion recorded in the same period in 2022.
The insurance companies grappling with this surge include Custodian Insurance, NEM Insurance, Sovereign Trust Insurance, AXA-Mansard Plc., AIICO, Mutual Benefits Assurance, and Cornerstone Insurance. Collectively, they reported a gross premium income of N200.515 billion for the first half of 2023, reflecting a 21.1 percent rise compared to N165.626 billion in the corresponding period of 2022.
Custodian and Allied Investment Plc. observed an 8.90 percent growth in claims, rising to N11.412 billion in 2023 from N10.479 billion in the same period of 2022. The company’s gross premium also increased by 13.39 percent to N41.411 billion.
AXA Mansard reported a claim payment of N9.389 billion for the first half of 2023, a 10.08 percent increase from N8.529 billion in 2022. The company’s gross premium income grew by 12.35 percent to N39.003 billion.
Sovereign Trust Insurance Plc. experienced a significant surge in claims, rising by 74.53 percent to N7.559 billion in 2023 from N4.331 billion in 2022. The company’s gross premium increased by 33.35 percent to N12.234 billion.
Mutual Benefits Assurance Plc. recorded net claims of N7.290 billion in 2023, marking a 16.36 percent increase from N6.265 billion in 2022. The company reported a gross premium income of N17.992 billion, accounting for a 15.06 percent growth.
AIICO Insurance saw a 56.51 percent increase in net claims payment, totaling N5.730 billion in 2023, compared to N3.661 billion in 2022. The company’s gross premium income for the period amounted to N49.997 billion, reflecting a year-on-year increase of 23.22 percent.
Cornerstone Insurance incurred N4.262 billion in claims for the first half of 2023, marking a substantial 166 percent increase from N1,602 billion paid in 2022. The company’s gross premium income grew by 24.93 percent to N13.324 billion.
Experts have attributed the surge in claims to various economic challenges, including difficulties in accessing foreign exchange, security challenges, and global economic headwinds resulting from international conflicts. These challenges have impacted premium growth and profitability for insurance companies in Nigeria.
