Insurance
From The Report: Nigeria 2016
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In 2015 Nigerian underwriters reported total gross written premiums of nearly N350bn ($1.1bn at the time of printing), according to data released by the Nigerian Insurers Association, an industry group. This figure was up around 19% on the previous year. In light of the pace of expansion, and in addition to Nigeria’s enormous population and low rate of insurance penetration, it is perhaps not surprising that the market has attracted a raft of major foreign insurance players in recent years. However, Nigeria’s insurers have faced a series of challenges. Far-reaching economic volatility, political instability and ongoing structural issues continue to hinder many local players. However, given the market opportunities many underwriters and market watchers are broadly optimistic about the future.

This chapter contains an interview with Mohammed Kari, Commissioner for Insurance, National Insurance Commission.

Articles from this Chapter

Overview

Eyes on the prize: Low penetration rate suggests future growth for local insurers
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The insurance sector has seen rapid grown in recent years. In 2015 Nigerian underwriters reported total gross written premiums (GWPs) of nearly N350bn ($1.1bn at the time of printing) according to data released by the Nigerian Insurers Association, an industry group. This figure was up around 19% on the previous year. In light of the pace of expansion, and in addition to Nigeria’s enormous population and low rate of insurance penetration, it is perhaps not surprising that the market has attracted…

Interview

Financial inclusion: OBG talks to Mohammed Kari, Commissioner for Insurance, National Insurance Commission (NAICOM)
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Interview:Mohammed Kari What can be done to increase the level of awareness of insurance products in Nigeria? MOHAMMED KARI: The level of insurance awareness in the country has improved considerably over the years. What has been missing is a commensurate improvement in penetration, which has been challenged by socio-economic, religious and cultural factors. NAICOM is continuing to work to break through these barriers with the introduction of financial inclusion products that can appeal to…

Analysis

Opting in: The government sets out to renew its commitment to the provision of universal health insurance
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Over the past decade Nigeria’s government has launched a variety of initiatives aimed at boosting awareness of the many benefits of insurance coverage among the general population. Perhaps the most ambitious of these plans is the National Health Insurance Scheme (NHIS), under which the state aims to provide universal health coverage across the country. Established in 2005, the programme’s initial target involved achieving 30% health coverage by 2015. However, by 2013 only around 3% to 7% of the…

Analysis

On the rise: The Islamic insurance segment, though still small, is widely considered to be developing quickly
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Nigeria’s takaful (Islamic insurance) segment has developed rapidly in recent years. Since the introduction of the Takaful Operations Guidelines – the nation’s first rulebook for sharia-compliant insurance products – by the National Insurance Commission (NAICOM) in 2013, the country has seen an influx of interest in developing takaful products for the Nigerian market. As of the end of 2015 three companies – African Alliance, Cornerstone and Niger Insurance – offered Islamic insurance…