The Insurance Sector Regains Momentum with 8.29% Growth in Q2 2023

The insurance sector rebounded in the second quarter as the sector grew by 8.29%, according to the latest data from the National Bureau of Statistics (NBS).

The report reviewed on the economic performance showed that the sector contracted by 7.25% in the first quarter of the year when the cash crunch crippled the economy following the decision of the Central Bank of Nigeria to redesign the nation’s currency.

The report also reveals that the finance and insurance sector is composed of two subsectors, financial institutions and insurance.

However, while the financial sector accounts for 90.78% share, the insurance sector contributed 9.22% to the sector’s overall performance in real terms during Q2 2023.

The report states, “As a whole, the sector exhibited remarkable growth at 28% in nominal terms year-on-year, with financial institutions leading the way with a growth rate of 30.41%, while insurance recorded an impressive 8.29% growth rate.”

It’s worth noting that the overall growth rate was slightly lower than that of Q2 2022 by 1.90%, but it marked a substantial increase of 5.63% compared to the preceding quarter.

According to the report, the quarter-on-quarter growth experienced a minor decline of 0.83%.

The insurance sector’s contribution to the nominal GDP in Q2 2023 stood at 4.01%, showing improvement from the 3.63% it represented a year earlier, although it was slightly lower than the 4.11% contribution it made in the preceding quarter.

This resurgence in the insurance sector bodes well for the overall economic landscape, reflecting its ability to bounce back from challenging times.