With a growing population of 170m and penetration still low, Nigeria’s insurance sector has considerable potential in demographic terms alone. At present, a large number of insurers compete for what business is available, creating a highly fragmented market. Acquisitions are an increasingly common mode of entry for foreign investors – a trend that is likely to continue. In the near term, attempts at better enforcement of laws and regulations are likely, as is the possible scaling-up of microinsurance and the introduction of sharia-compliant products. Despite shortcomings in enforcement and financial reporting, the insurance sector continues to post double-digit growth, with a bright future ahead given demographic trends.
This chapter contains an interview with Fola Daniel, Commissioner for Insurance, National Insurance Commission (NAICOM)