By Emmanuel Damilare
Insurance market recorded deeper concentration in the life segment in the second quarter of 2024, as a small group of dominant insurers tightened their grip on premium income, even as total industry assets rose to N3.69 trillion.
Industry data show that the top three life insurance companies controlled 43.8 per cent of total life premium, compared with 34.8 per cent held by top three firms in the non-life segment, pointing to sharper consolidation in life insurance business.
The gap widens further down the market. The top 10 life insurers generated 86.6 per cent of total life premium, while the bottom 10 companies accounted for just 1.3 per cent, underscoring the shrinking space for smaller operators.
The gap widens further down the market. The top 10 life insurers generated 86.6 per cent of total life premiums, while the bottom 10 companies accounted for just 1.3 per cent, underscoring the shrinking space for smaller operators.
Analysts attribute the trend to stronger capital positions, wider distribution networks and dominance in group life and annuity products by leading firms.
In the non-life segment, competition was relatively broader but still tilted toward large players. The top 10 non-life insurers accounted for 66.3 per cent of gross written premiums, while the least 10 firms controlled only 1.1 per cent of the market, highlighting persistent scale challenges.
Speaking at a recent Nigerian Insurers Association (NIA) stakeholders’ forum in Lagos, the association’s chairman, Oladapo Oshinusi, said consolidation reflects structural changes in the market but warned that size alone would not define success.
“Stronger balance sheets must translate into better governance, faster claims settlement and improved public confidence,” Oshinusi said. “That is what will ultimately justify consolidation in the eyes of policyholders.”
Beyond market share shifts, the industry’s balance sheet strengthened during the quarter, with total assets rising by 9.5 per cent to ₦3.69 trillion, from ₦3.34 trillion in the first quarter of 2024. Non-life insurers held ₦2.29 trillion of the asset base, while life insurers accounted for ₦1.40 trillion.
However, insurance analyst and former regulator Dr. Tope Fasoranti, also speaking at the forum, warned that rising concentration could mask deeper structural weaknesses.
“We are seeing balance sheets grow, but that does not automatically mean the market is healthier,” Fasoranti said. “If consolidation is not accompanied by stronger underwriting discipline, transparent governance and prompt claims payment, the industry risks becoming more concentrated without becoming more trusted.”
As the sector moves toward recapitalisation and tighter regulatory oversight, analysts say the challenge will be ensuring that financial consolidation delivers broader competition, improved market conduct and tangible benefits for policyholders.
