Abstract
The profitability of insurance companies hinges on more than just policy volume; adequate premium rates are crucial to ensure timely claim payouts. In Nigeria, many insurers struggle with premium income underwriting performance due to inadequate risk-based pricing, leading to asset depletion and compromised financial stability. This study investigates the impact of actuarial risks on non-life insurance premium income underwriting performance affect solvency, analyzing data by using 72 member companies of the Nigeria Insurers Association (NIA). Using panel least square method to analyze the data collected, the findings revealed that over 90% of premiums collected are allocated to claims payouts, highlighting a pressing need for risk reduction strategies to bolster financial stability. The study recommends that insurers adopt proactive measures to mitigate solvency issues through optimization of premium income underwriting performance.
Keywords:
actuarial risk; financial risk; nonlife insurance; premium underwriting performance.
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