Insurance
From The Report: Nigeria 2015
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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)

Articles from this Chapter

Overview

Efforts at better regulatory enforcement in Nigeria’s insurance sector
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With a growing population of 170m and penetration still low, Nigeria’s insurance sector holds much latent potential in demographics alone. For investors that see an attractive market for insurance in the country, such considerations are enough to outweigh the relatively small size of the sector, as well as the obstacles created by legal and regulatory shortcomings. At present, a large number of insurers compete for what little business is available, creating a highly fragmented market. Acquisitions…

Analysis

Emergence of microinsurance and takaful to boost market penetration
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Bolstered by the country’s large population and emerging middle class, the growth of Nigeria’s insurance sector appears inevitable with time – especially given the current, extremely limited level of insurance spending. Regulators are pursuing several reforms they hope will speed up the process, and the National Insurance Commission (NAICOM) has initiated changes and issued guidelines for new methods of insurance to that effect. Aside from addressing regulatory concerns and compliance, the…

Interview

Fola Daniel, Commissioner for Insurance, National Insurance Commission (NAICOM): Interview
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Interview:Fola Daniel What can be done to ensure that insurance profits derived from oil and gas are kept in Nigeria? FOLA DANIEL: We encourage local insurers to build capacity, as this will help halt the capital flight currently being experienced in the oil and gas segment. With limited local insurance capacity, larger risks have traditionally been ceded abroad. We are therefore making efforts to manage more risk locally. We used to have legal session, but removed this to liberalise the…