Global Insurance Market Overview
In 2024, the global insurance industry recorded its strongest topline performance in over a decade, with total premiums growing by 5.2% y/y to $7.8tn, according to Swiss Re. This marked a significant recovery from the slower 2.3% growth in 2023. The non-life segment expanded by 4.7% y/y, benefitting from firm pricing and increased demand for protection in health, property, and cyber insurance. Meanwhile, the life insurance segment rebounded, growing 6.1% y/y, as the higher rate environment supported annuity products and long-term savings instruments.
Beyond premium expansion, the industry experienced notable structural transformation. The InsurTech sector grew by 8.5% to $28.1bn, buoyed by increased adoption of embedded insurance, AI-driven underwriting, and digital distribution models. Meanwhile, the cyber insurance segment grew to $15.3bn, supported by a 40.0% increase in SME uptake, as global businesses sought protection from mounting digital threats. Despite these gains, protection gaps remain large as cyber losses stood at $945.0bn in 2024, with nearly 90.0% uninsured.
Despite 2024’s strong performance, the outlook for 2025 appears more cautious. Global premium growth is forecast to slow to 2.0%, reflecting heightened macroeconomic uncertainties, policy instability in advanced markets, and a broader global economic slowdown.
Domestic Insurance Market Overview
In Nigeria, the insurance industry continued to perform strongly after hitting the ₦1.0tn mark in GPW in 2023, with Gross Premium Written (GPW) rising by 55.8% y/y to ₦1.6tn. The non-life segment dominated (₦808.4bn, 68.9% of GPW), driven by strong uptake in oil & gas, fire, and motor classes. The surge in premium was primarily underpinned by regulatory enforcement of compulsory insurance, inflation-driven repricing, and naira depreciation following FX liberalisation (which revalued foreign currency premiums).
Despite sector-wide structural challenges, underwriting performance improved significantly. Industry-wide insurance revenue (proxied by AIICO, CONHALLP, CORNERST, MANSARD, NEM, and WAPIC) rose 66.3% y/y to ₦455.5bn, while total Insurance Service Result soared by 152.6% y/y to ₦36.3bn. Underwriting margins improved by 2.7ppts to 8.0%, and sector Return on Average Assets (ROAA) and Return on Average Equity (ROAE) averaged 24.6% and 53.7%, respectively, highlighting operational efficiency and stronger balance sheet deployment.
Meanwhile, the long-overdue recapitalisation directive regained momentum. Following the passage of the Nigeria Insurance Industry Reform Bill 2024 by the National Assembly, and NAICOM’s release of its risk-based capital exposure draft, the stage is now set for an industry shake-up. Under the proposed minimum capital thresholds, a wave of mergers, equity injections, and asset revaluations is expected to follow.
Looking ahead, the industry is poised for a transformative year in 2025. Following the foundational progress made in 2024, we expect that the recapitalisation mandate will drive strategic activity across the sector, particularly mergers, acquisitions, and capital raising efforts. This process will likely result in a more consolidated market structure, with fewer but stronger players that can underwrite larger risks, expand product offerings, and scale operational efficiencies. As capital adequacy improves, we anticipate a gradual shift toward high-value segments, supported by stronger balance sheets and improved governance.
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