An Introduction to the Brief History of Insurance in Nigeria
“The greatest oak was once a little nut who held its ground,” according to a proverb.
More accurately said, there is a beginning to every great tale and brand in the world. Even the finest mythologies and medieval customs are predated by evolution. Similar to other industries, the insurance sector in Nigeria was founded on years of stone-gathering prior to our arrival. The emergence and viability of insurance companies in Nigeria will be addressed in this section.
Do you often use insurance companies, or are you only now becoming acquainted with them? Let’s travel back in time to the beginning of it all.
How Nigerian Insurance Began…
The colonial era laid the groundwork for [modern] insurance operations in Nigeria prior to our independence. Through the introduction of interregional trade, European companies provided services. In order to reduce risk locally, they got insurance licenses from foreign authorities.
After Nigeria gained its independence, these European businesses had to maintain their dominance there. Nonetheless, this resulted in the establishment of these brands’ branches in Africa. The eventual visibility of insurance in Nigeria can be attributed to this development.
The First Insurance Companies in Nigeria
Officially, the Royal Exchange Assurance Agency surpassed all other insurance companies in Nigeria’s insurance history. The African Insurance Company Limited is the native representative for its indigenous variation, which is native to Nigerians. It first materialized and began offering its services in 1958.
At the time the Royal Exchange Assurance Agency was in operation, the following companies were also in business:
BEWAC’s Legal and General Assurance
Patterson Zochonis [PZ] Liverpool
Law Union and Rock
The Emergence of The National Insurance Commission
The Nigerian government created NAICOM in an attempt to assert its sovereignty. It was necessary for the Nigerian Insurance Market to enact laws that were compatible with her local surroundings.
To regulate insurance operations across the nation, the National Insurance Commission was founded in 1997. Since then, NAICOM has been tasked with serving as Nigeria’s primary insurance regulator.
A synopsis of Nigeria’s insurance history gives seasoned and “freshmen” policyholders context. Without mentioning our former colonial masters, it is nearly impossible to examine the development of insurance in Nigeria. In an ideal world, this served as the foundation for national operations and practice. However, the industry has seen continuous development over the last few years.