Leading Nigerian insurers paid out N254.96bn in claims during the 2025 financial year, a 24.23 per cent increase from the N205.23bn paid in 2024. The rise, drawn from audited financial statements of AIICO Insurance, Prestige Assurance Plc, NEM Insurance Plc, AXA Mansard Insurance Plc and Consolidated Hallmark Insurance Plc, occurred despite a 33.95 per cent growth in total revenue, which reached N518.37bn. Nearly half of that revenue—49.18 per cent—was consumed by claims payouts. Analysts link the surge to macroeconomic pressures including inflation, currency depreciation, high energy costs and rising insecurity.
Data from the National Insurance Commission (NAICOM) shows total industry claims reached N724.7bn in 2025, equivalent to 31.5 per cent of gross premiums written, with an 88.5 per cent settlement rate. NAICOM attributes the growth in premiums and claims to deeper insurance penetration and market reforms. Former Secretary General of the African Insurance Organisation, Prisca Soares, said rising operational costs are eroding profits despite higher premiums. Insurance broker John Chikelue stressed the need for expanded market reach and better risk management.
Mayowa Adeduro, Managing Director of Tangerine General Insurance Plc, attributed the claims spike to economic hardship weakening maintenance culture and increasing fraud. He cited arson, theft and accidents as growing risk factors. Edwin Igbiti, former President of the Chartered Insurance Institute of Nigeria, noted rising insurance acceptance, though penetration remains low.
Mayowa Adeduro points to economic hardship driving claims, yet insurers continue pricing policies beyond the reach of most Nigerians named in the report. If economic desperation is pushing people to file minor or fraudulent claims, the same hardship limits millions from affording coverage in the first place. This creates a cycle where insurers pay more to fewer policyholders while excluding the majority who need protection. The sector's growth narrative ignores the reality that low insurance density persists not from lack of risk, but lack of access.
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