Insurance Sector Surges 49.4% to ₦1.56 Trillion in 2024 as NAICOM Report Shows Near ₦4 Trillion Asset Base

Sector records strongest expansion in financial services as assets approach ₦4 trillion, claims rise 50.9%, and regulatory reforms deepen market stability

The Nigerian insurance industry delivered a record-breaking performance in 2024, growing by 49.4 per cent to close the year at ₦1.558 trillion in gross written premium, according to a fresh industry report released by the National Insurance Commission (NAICOM) on Monday, April 13, 2026.
The report, which reviewed market performance across the insurance sector, described 2024 as one of the strongest growth years in recent history, reinforcing insurance as one of the fastest-expanding segments within Nigeria’s financial services industry.
Despite inflationary pressures, exchange rate volatility, and broader macroeconomic uncertainty, the sector maintained consistent upward momentum across all key performance indicators, including premiums, claims, assets, and retained earnings.
Non-Life Insurance Dominates Market Structure
NAICOM’s report confirmed that the non-life insurance segment remained the backbone of the industry, accounting for ₦1.060 trillion, representing 68 per cent of total gross premiums written in 2024.
The life insurance segment contributed ₦498.2 billion, or 32 per cent, reflecting the industry’s long-standing structural composition, where general insurance lines continue to dominate due to compulsory insurance classes and high-value commercial risks.
Within the non-life portfolio, Oil & Gas insurance emerged as the leading contributor, accounting for 33.7 per cent of total non-life premiums, followed by Fire, Motor, Marine & Aviation, General Accident, and Miscellaneous insurance classes.
Claims Rise by 50.9%, Reflecting Market Expansion
The report also showed a significant increase in claims payments across the industry, which rose by 50.9 per cent year-on-year in 2024.
Non-life claims stood at ₦635.5 billion (68.6 per cent)
Life insurance claims totalled ₦290.7 billion
According to NAICOM, the rise in claims reflects both increased underwriting activity and expanded risk exposure, particularly in energy, transportation, and corporate insurance segments.
However, the Commission noted that claims levels remained within sustainable thresholds, reflecting strong underwriting discipline and improved risk management practices across the industry.
Industry Assets Near ₦4 Trillion
Total assets of the insurance sector rose by 31.7 per cent, reaching ₦3.957 trillion in 2024, underscoring continued financial strengthening and capital accumulation within the industry.
Asset composition remained aligned with premium distribution:
Non-life insurers held ₦2.395 trillion (60.5 per cent)
Life insurers accounted for ₦1.562 trillion (39.5 per cent)
NAICOM stated that this structure reflects a stable and maturing market with improving balance sheet resilience across underwriting firms.
Five-Year Growth Trajectory Remains Strong
The report highlighted that between 2020 and 2024, the insurance industry recorded consistent double-digit growth, with no negative annual performance during the period.
Key five-year highlights include:
Gross written premium grew from ₦514.6 billion (2020) to ₦1.558 trillion (2024) — a 202.9 per cent increase
Non-life insurance expanded by 275.1 per cent
Life insurance grew by 114.9 per cent
Fire insurance recorded the highest five-year growth at 397.9 per cent, followed by Oil & Gas (288.7 per cent), Marine & Aviation (287.3 per cent), and Motor insurance (238.1 per cent).
NAICOM attributed this sustained performance to improved regulatory oversight, product diversification, and gradual expansion in insurance adoption across corporate and retail markets.
Life Insurance Maintains Steady Growth
Life insurance recorded a 21.5 per cent growth rate in 2024, supported by rising demand for long-term savings, retirement planning, and group life schemes.
Market composition within the life segment showed:
Individual life policies: 45 per cent
Group life policies: 30.6 per cent
Annuity products: 24.4 per cent
The Commission noted steady expansion in life insurance uptake, though penetration levels remain relatively low compared to global averages.
Stronger Risk Retention Signals Market Confidence
One of the key highlights of the report was the continued improvement in premium retention capacity, a major indicator of industry strength and underwriting confidence.
Net retained premiums increased from ₦368.6 billion in 2020 to ₦923.9 billion in 2024, representing a 150.7 per cent growth over five years.
NAICOM said this reflects growing confidence among insurers in retaining more risks locally, strengthening domestic underwriting capacity and reducing dependence on foreign reinsurance markets.
Reforms, Digitalisation and Supervision Drive Growth
The Commission attributed the industry’s strong performance to ongoing regulatory reforms and digital transformation initiatives implemented during the review period.
Key interventions included:
Cancellation of one non-viable insurance operating licence
Licensing of five new insurance operators
Deployment of digital platforms including:
Microsoft Office 365 integration
Electronic Documentation Management System (EDMS)
Centralised Complaints Management System
Enterprise Resource Planning (ERP) system
Integration with the Nigeria Customs Service (NCS)
These initiatives, NAICOM said, have significantly improved efficiency, transparency, compliance monitoring, and customer protection across the sector.
Inter-Agency Collaboration Strengthens Strategic Segments
The report further highlighted enhanced collaboration between NAICOM and key government agencies, particularly in aviation and special risks insurance.
Ongoing reforms in aviation insurance and reinsurance arrangements aim to:
Strengthen local participation in high-value risk sectors
Reduce capital flight
Improve technical capacity within the domestic market
Align with global insurance standards
Support broader economic growth and GDP expansion
Insurance Reform Bill Near Presidential Assent
A major legislative milestone in 2024 was the passage of the Nigerian Insurance Industry Reform Bill by the National Assembly, now awaiting presidential assent.
According to NAICOM, the bill is designed to:
Modernise Nigeria’s insurance legal framework
Consolidate existing insurance laws
Strengthen regulatory enforcement
Improve market confidence and transparency
Enhance long-term sector sustainability
Outlook: Strong Growth, Low Penetration Challenge Remains
While the 2024 performance signals a robust and expanding industry, NAICOM acknowledged that insurance penetration in Nigeria remains low relative to the size of the economy.
However, the Commission expressed optimism that continued reforms, compulsory insurance enforcement, digital transformation, and public awareness campaigns will further deepen market penetration in the coming years.
Industry analysts say the sector’s trajectory positions it as a key contributor to Nigeria’s financial stability and long-term economic diversification agenda.
Nigeria’s insurance industry grew by 49.4% to ₦1.56 trillion in 2024, according to NAICOM’s April 13, 2026 report, driven by strong non-life dominance, rising claims, asset growth near ₦4 trillion, and regulatory reforms boosting digital transformation and market stability.