There is no other word that adequately conveys the importance of insurance. Insurance is a complex topic since, although being a widely understood idea, there are still many aspects that are unclear to the majority of people. In this essay, we will debunk common myths about insurance and the Nigerian insurance market and give you all the facts you require.
Overview of Insurance in Nigeria
One of the biggest insurance markets in the world is in Nigeria. In Nigeria, there are roughly 57 insurance companies that are fully registered. They are further divided into groups based on the services they provide to the general public; 14 insurance companies concentrate on providing life insurance, while the remaining 43 do not. Along with these companies, there are also some individuals who work in the insurance industry, including 15,000 independent insurance agents and 460 insurance brokers.
Companies are incorporated under the prudential standards of the Companies and Allied Matters Act 1990, which regulates the insurance industry in Nigeria. The National Insurance Commission, also known as NAICOM, was founded in 1997.
Some of The Top Insurance Companies in Nigeria
If you randomly searched for “insurance companies in Nigeria” on Google, your results would certainly leave you even more perplexed than when you started. Nigeria has a large and thriving insurance sector. Sorting through the 57 registered companies might be time-consuming. The following companies should be on your radar if you’re seeking for the best insurance providers in the market, though:
- Assurance from Leadway
- Insurance through AIICO
- Old Mutual Custodian AXA Mansard and Allied Cornerstone Insurance
- Affinity Insurance Group Plc
- Insurance by Goldlink
- Industrial and General Insurance at Continental
- Assurance by Lasaco
- AXA Insurance
- Allianz Insurance Nigeria
These insurance companies are among the most well-known in the sector and provide their clients with a vast array of insurance-related services. These services offer coverage for many of the most popular insurance policies, including those for automobiles, aircraft, boats, and ships, professional indemnity insurance, fire and special insurance, personal accident, bonds, money, homeowners insurance, marine insurance, health insurance, and many other particular policies.
How Insurance Companies In Nigeria Make Money
Customers who purchase insurance plans pay premiums to the insurance companies. These monies are invested, and any profit earned is reported to the business as a profit. In addition, not all premiums paid to insurance companies are reimbursed because not every covered client is eligible to file a claim within a given year.
Settlement of Insurance Claims
A formal request for reimbursement for a loss or damage made by an insured person to his insurer is known as an insurance claim. According to the terms of the policy, the insurance company is required to provide this compensation. However, in most cases, an inquiry into the claim is conducted first to establish that the loss or damage is, in fact, natural and not the result of intentional behaviour. The compensation is paid and the application is said to be concluded once the investigation establishes the validity of the claim.
The Most Popular Insurance Products In Nigeria
Given the wide range of services that may be offered, insurance comes in many different forms. The most widely used insurance products in Nigeria include:
- Vehicle Insurance
- Travel insurance health insurance, especially HMO plans
- The Development of the Insurance Sector in Nigeria
Nigeria’s insurance market has experienced rapid expansion in recent years. Thanks to the development of financial exposure and inclusiveness. More people in the nation are becoming aware of how important insurance is. With $1.64 million in total premiums collected from Nigeria worldwide as of the end of 2018, the Nigerian insurance sector was placed 62nd globally.
Insurance in Nigeria may be lowly saturated, yet it is one of the industries with the most potential worldwide. The federal government and industry stakeholders regularly put policies into place to promote the sector’s expansion in the nation.