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An Overview of Insurance in Nigeria

When it comes to insurance, no other word quite packs a punch. Insurance is a tricky subject because while it is a popular concept, there is still a lot that is not clear to most people. In his article, we will demystify insurance and the insurance industry in Nigeria, providing you with information on all you need to know.   

Overview of the Insurance in Nigeria

The Nigerian insurance industry is one of the most extensive in the world. There are about 57 fully registered insurance companies in Nigeria.  They are further classified by the type of services they offer to the public, with 14 insurance companies centring on life insurance, and the other 43 focused on non-life insurance services. In addition to these companies, some individuals partake in the running of operations in the industry, comprising of 460 insurance brokers and 15,000 individual insurance agents.  

The insurance industry in Nigeria is regulated by the National Insurance Commission, also known as NAICOM, which was established in 1997 and companies are incorporated under the prudential guidelines of the Companies and Allied Matters Act 1990. 

Some of The Top Insurance Companies in Nigeria

If you did a random google search on ‘insurance companies in Nigeria’, your search would probably leave you more confused than when you were at the beginning. The insurance industry in Nigeria is pervasive. With over 57 registered companies, sifting through the ranks can be tedious. However, if you are looking for top insurance companies in the industry, then you should have the following companies in your sights;

These insurance companies are some of the most reputable in the industry, offering a wide range of insurance-related services to their customers. These services cover a lot of the most common insurance plans such as motor insurance, aviation insurance, marine insurance, professional indemnity insurance, fire and special insurance, Personal accident, Bond insurance, Money insurance, Householder’s Insurance, marine insurance, health insurance, as well as many other specific 

How Insurance Companies in Nigeria make Money

Insurance companies receive premiums from their customers who take out insurance policies. These funds are used as investments, upon which any financial gain is recorded as a profit to the company. Besides this, not all premiums paid to the insurance companies are paid back, as not every single insured customer may claim in a calendar year.  

Settlement of Insurance Claims

An insurance claim is a formal application made by an insured individual to his insurer requesting compensation for a loss or damage. The insurance company is obliged to pay this compensation, as stated in the policy. Still, usually, an investigation into the claim is made firs to determine that the loss or damage is indeed natural and not a deliberate action. Once the investigation proves the claim to be genuine, the compensation is paid, and the application is determined to be settled.  

Insurance exists in many forms, as the services that could be provided vary. In Nigeria, the most popular insurance products include:

Growth of The Insurance Industry in Nigeria Over Time

The insurance industry in Nigeria is one that has seen exponential growth in recent years. Thanks to the advent of financial inclusion and exposure. More individuals in the country recognize the importance of insurance. As at the end of 2018, the Nigerian insurance industry ranked 62nd in the world with $1.64 million collated from Nigeria in total premiums around the globe.

Conclusion

Insurance in Nigeria might be lowlily saturated, but it has been regarded as one of the sectors with the most potential in the world. The federal government and stakeholders in the industry continuously implement policies to further the growth of the sector in the country.
Categories: General Insurance