2022 Insurance Industry Report
In 2021, the Insurance Industry had to grapple with the negative residues of the COVID-19 pandemic and the #EndSARS protests. In particular, higher claims were paid to policyholders who suffered losses from lootings and destruction that marred the #EndSARS protests in October 2020. As a result, the Industry’s gross premium income (GPI) remained stagnant at ₦520.1 billion (or $1.4 billion) when compared to the prior year. Nevertheless, the Industry remains resilient with various initiatives by insurers to improve retail product penetration and boost GPI. Some of these initiatives include increased adoption of bancassurance to reduce the dependence on brokers and partnerships with Fintechs. We believe that enhanced bancassurance would allow insurance operators to leverage the more structured data and client base of the banking industry to deepen their reach in the retail market. Furthermore, the sharp switch to virtual channels, one of the many rapid changes witnessed during the pandemic induced lockdowns in 2020 was sustained in 2021 with individuals and corporates maintaining a significant online presence. We expect this trend to continue. With more people online, insurance companies can create targeted marketing campaigns aimed at re-orientating Nigerians to embrace insurance products.
Our Agusto & Co.’s 2022 Insurance Industry Report include an analysis of the following: