The insured made claims of N318.2 billion on insurance companies in the last quarter of 2022.
The National Insurance Commission (NAICOM), regulator of the industry stated in Lagos on Thursday that the claims represented a 31.2 per cent Quarter-on-Quarter growth from the previous quarter.
It attributed the growth to rising awareness, market expansion and consumer confidence.
It stated that net claims paid amounted to N244.3 billion, growing at about 18 per cent Quarter-on-Quarter during the same period.
NAICOM noted that non-life insurance segment indicated that motor insurance led the result of claims settlement vis-a-vis gross claims at 92.3 per cent, signifying a nine-point improvement as against its prior position.
According to the commission, fire insurance is the least with 46.3 per cent, which is the only class below average proportion.
The Commission reported that all other portfolios recorded a proportion above the average of paid claims, against gross claims reported.
They are General accident insurance with 80.7 per cent; Oil and Gas with 51.6 per cent, Marine and Aviation with 74.4 per cent, and miscellaneous insurances with 86.1 per cent.
It stated that life insurance reported two points lower in comparison to the 95 per cent of net claims paid, compared to total claims reported in the corresponding period of 2021.
“The data revealed an impressive development with regard to claims settlement in non-life business with a record of 63.7 per cent compared to the previous period of 46.9 per cent.
“It, therefore, indicates that despite operational challenges, the claims settlement experience of insurers is improving,” it stated.
NAICOM added that the market recorded about 47.2 per cent net loss ratio during the period under review, suggesting a workable, cost effective and profitable business in the industry.
It attributed the performance mostly to the life business sustaining its positive course at 46.5 per cent net loss ratio in the current period while the non-life portfolio recorded about 48.1 per cent during the same period.
“Comparatively, the market recorded an aggregate market average of 54.5 per cent of net loss ratio in the previous period, hence depictive of an improved aggregate market desirability and profitability during the current period.
“Six companies with net loss ratios above 100 per cent were majorly responsible for the average industry loss registered for the period,” the regulator stated.