The insurance sector has shown signs of recovery, posting an 8.29% growth rate in the second quarter of 2023, according to the latest data from the National Bureau of Statistics (NBS).

Earlier in the year, the sector faced a setback with a 7.25% contraction in the first quarter, attributed to challenges arising from a cash crunch crisis triggered by the Central Bank of Nigeria’s naira redesign policy.

The NBS’s second-quarter GDP report delineated the finance and insurance sector into two subsectors: financial institutions and insurance, with the former accounting for 90.78% and the latter for 9.22% of the sector’s real terms in Q2 2023.

In nominal terms, the sector grew by 28% year-on-year, with financial institutions experiencing a growth rate of 30.41%, and insurance registering an 8.29% growth rate.

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While the overall growth rate was 1.90% lower than in Q2 2022, it was 5.63% higher than the preceding quarter. Quarter-on-quarter growth fell by 0.83%.

The sector’s contribution to nominal GDP stood at 4.01% in Q2 2023, surpassing the 3.63% recorded the previous year but slightly lower than the 4.11% contribution in the preceding quarter.

In real terms, the sector’s growth reached 26.84%, marking an increase of 8.37% compared to the rate in the second quarter of 2022 and 5.47% compared to the preceding quarter.

The contribution of Finance and Insurance to real GDP reached 5.26%, surpassing the 4.25% contribution recorded in the second quarter of 2022 by 1.01% but slightly lower than the 5.35% recorded in Q1 2023 by 0.08%.