The National Bureau of Statistics (NBS) has reported a 6.07 percent growth in the nation’s insurance industry in the second quarter of this year.
The risk underwriting sector currently accounts for 16.02 percent share of the financial services market.
In its latest report on the finance and insurance sector’s performance in the quarter under review, that Bureau stated that the finance and insurance sector consisted of two sub-sectors, namely the financial institutions and insurance both of which account for 83.98 per cent and 16.02 per cent of the sector respectively in real terms in Q2 2018.
The NBS reported: “As a whole, the sector grew at 3.49 per cent in nominal terms (year on year), with the growth rate of financial institutions as 3.01 per cent and 6.07 per cent growth rate recorded for insurance. The overall rate was lower than that in Q2 2017 by –14.19 per cent points, and lower by -10.34 per cent points than the preceding quarter.
“Quarter-on-quarter growth was –1.94 per cent. The sector’s contribution to the overall nominal GDP was 3.42 per cent in Q2 2018, lower than the 3.75 per cent in the previous year and lower from the contribution of 3.76 per cent it made in the preceding quarter by -0.33 per cent points and -0.34 per cent points respectively”, it added.
According to the national statistics producing and reporting agency, when analysed based on the financial institutions activity in the quarter under review, the sector’s total growth in real terms totalled 1.28 percent, lower by –9.18 percent points from the rate recorded in Q2, 2017 and down by –12.03 percent points from the rate recorded in the preceding quarter.
It expatiated: “Quarter-on-quarter growth in real terms stood at –3.80 per cent. The contribution of finance and insurance to real GDP totalled 3.31 per cent, lower slightly than the contribution of 3.32 per cent recorded in the second quarter of 2017, and lower than 3.55 per cent recorded in the preceding quarter.”
The NBS disclosed further that the nation’s GDP growth rate for the Q2 declined from 1.95 percent in Q1 to 1.5 percent.
Analysts in the industry forecast that in view of the not-too-impressive performance of the insurance sub-sector during the quarter in review, there are indications that its growth target and contributions to the nation’s GDP may not be realized.
