We can trace the origins of insurance in Nigeria back to the introduction of British trading companies. These companies had to manage the risks that came with their operations.
As a result, they had to form insurance agencies that obtained their licenses from outside the country. These licenses allowed these businesses to make it easier to provide insurance and process claims.
During this time, Nigeria’s insurance market began to expand rapidly. However, due to the effects of the Second World War, it grew slowly in the 1919s and 20s.
The insurance industry, on the other hand, started up and flourished at a quicker rate after the war ended.
They founded the first indigenous corporation in Nigeria in 1958. When Nigeria won independence on October 1st, 1960, there were about 4 ingeniously owned Insurance Businesses.
Furthermore, the Nigerian Federal Government established the National Insurance Commission in 1997. (NAICOM).
They’ve assigned them the task of managing and organizing insurance activity in Nigeria.
According to NAICOM, there are 58 insurance companies in Nigeria as of now.
How big is the insurance industry in Nigeria?
According to the Nigerian Stock Exchange’s (NSE) 2019 report, the Nigerian Insurance Industry ranks 62nd in the world, with $1.64 billion in premiums received in 2018, accounting for 0.2 percent of premiums collected globally.
How many reinsurance companies are in Nigeria?
According to the website of the National Insurance Commission (NAICOM), Nigeria has 56 registered insurance companies and two (2) reinsurance businesses.
How many insurance companies are there 2020?
- According to S&P Global Market Intelligence, the US insurance industry’s net premiums written in 2020 will reach $1.28 trillion, with property/casualty (P/C) insurers accounting for 51% and life/annuity insurers accounting for 49% of the total.
- Auto, homes, and business insurance are the most common types of P/C insurance. In 2020, the sector’s net premiums written totalled $652.8 billion.
- Annuities, accident and health insurance, and life insurance are all part of the life/annuity insurance market. In 2020, the sector’s net premiums written totaled $624.0 billion.
- Although most private health insurance is written by health insurance companies, life/annuity and property/casualty insurers also write accident and health insurance. According to S&P Global Market Intelligence, total private health insurance direct premiums issued in 2020 were $1.1 trillion, with $834.4 billion from the health insurance sector, $209.8 billion from the life/annuity segment, and $6.4 billion from P/C annual statements. Government programs are also included in the health insurance market.
- According to the National Association of Insurance Commissioners, there will be 5,929 insurance companies in the United States (including territories) in 2020. P/C (2,476 firms), life/annuities (843), health (995), fraternal (81), title (62), risk retention groups (245), and other firms make up this total (1,227).
- According to S&P Global Market Intelligence, total P/C cash and investment assets were $2.0 trillion in 2020. In 2020, life and annuity cash and invested assets were $4.7 trillion, while separate account assets and other investments were $3.0 trillion. Both industries had a total cash and invested asset value of $9.7 trillion. Bonds made up the majority of these assets (55 percent of P/C assets and 70% of life/annuity assets, excluding separate accounts).
- According to the US Department of Commerce, P/C and life/annuity insurance businesses paid $24.7 billion in premium taxes in 2020, or $75 for every person living in the US.
- According to Aon, property losses attributable to natural disasters cost P/C insurers $74.4 billion in 2020, up from $38.7 billion in 2019 and $60.4 billion in 2018, including losses from the National Flood Insurance Program.
- According to the US Department of Labor, the insurance business in the United States employed 2.9 million people in 2020. 1.7 million of them worked for insurance businesses, including life and health insurers (962,500 employees), property and casualty insurers (665,900 employees), and reinsurers (665,900 employees) (27,300 workers). Insurance agencies, brokers, and other insurance-related businesses employed the remaining 1.2 million workers.
- The COVID-19 pandemic has prompted insurers to act rapidly. The Insurance Information Institute (Triple-I) forecasts that by June 2020, U.S. insurers and their foundations will have donated nearly $280 million to the fight against COVID-19, based on data collected by the Insurance Industry Charitable Foundation (IICF). In addition, more than $150 million was provided by multinational insurers and their charities. According to a Triple-I estimate, vehicle insurance in the United States have responded to the pandemic by repaying more than $14 billion to their clients nationally as a result of reduced driving during the epidemic. In addition, the IICF developed two children’s relief funds, one in the United States and one in the United Kingdom, which raised $1.3 million to tackle food poverty and a lack of educational resources caused by the pandemic.
How many types of insurance do we have in Nigeria?
Insurance benefits you far more than you realize! It not only protects you and your family from fires and accidents, but it also protects you and your family from financial misfortunes.
Health insurance, automotive insurance, vacation insurance, and life insurance are all examples of insurance products.
- Home insurance – Because a home is most Nigerians’ largest investment, it is critical that it is protected. You can pay a little more for guaranteed replacement coverage, which guarantees that your home will be rebuilt if it is damaged. If you only designate a particular amount of coverage, you may be responsible for the difference if it does not cover all of your replacement costs.
- Homeowner’s insurance is a type of insurance that protects a person’s home. This helps to safeguard your mobile assets, such as laptops and cell phones. This policy covers items that are damaged or stolen even if they occur outside of your home or premises.
- Health insurance entitles you to a wide range of free preventive treatment, tests, consultations, and screenings when you have a health insurance coverage. Most plans also include benefits that aren’t immediately related to medical care, such as gym membership discounts and telemedicine, among other things. You can live a healthy life while maximizing the value of your health insurance by taking advantage of these benefits.
- 3rd party car insurance – In Nigeria, an automobile owner is required to have at least 3rd party car insurance. If you want to drive a car on Nigerian roads, you’ll need car insurance. Insurance is not something you choose to do or not do; it is a legal requirement on the part of the vehicle owner or driver to guarantee that the proper coverage is in place to cover losses caused by other road users. There’s also full-coverage automobile insurance, which protects all parties involved in an accident.
- Life insurance is the simplest and cheapest type of insurance available. For the most part, life insurance is the best option. After you pay the premium, you are covered. Many life insurance policies include wonderful living benefits such as interest on savings, tax rebates, and cash back, among others, in addition to giving your loved ones something to fall depend on in the event of your death. Life savings and education plans are two good examples of life insurance programs.
- Travel Insurance: Knowing that you’re covered by your travel insurance plan when you travel outside of Nigeria provides you peace of mind. When you go outside of your home country, travel insurance protects you. It covers things like accidental damage, emergency evacuation, and medical emergencies, among other things. When traveling outside of Nigeria, it is also a legally necessary document.
- Although it is still relatively new in Nigeria, mobile phone insurance is getting increasingly popular. In Nigeria, mobile phone insurance is rapidly gaining traction as more people recognize the value of purchasing a policy to safeguard their expensive digital gear, not only phones, from harm.
While we all strive to avoid mistakes, accidents sometimes happen, which is why having insurance is so vital. An insurance policy protects you from any potential risks that life may throw your way, allowing you to maintain your existing financial situation.
How many non life insurance companies are in Nigeria?
There are 57 registered insurance companies in Nigeria’s insurance market. Life insurers account for 14 of them, while non-life insurers account for 43. There are also two reinsurance businesses that assist the insurance companies with technical security and capacity.
The Businesses and Allied Matters Act of 1990 governs the majority of insurance companies.
How many composite insurance companies are in Nigeria?
There are five (5) different types of operating licenses available today.
NAICOM has provided certificates for insurance businesses in the life, general, and reinsurance sectors.
Microinsurance and Takaful are two types of insurance, whilst Composite refers to a category of insurance.
Those businesses that hold both Life and General insurance licenses. Currently, Nigeria has
Thirteen (13) Composite, and sixty-three (63) re/insurance companies
There are 27 general insurance companies, 13 life insurance companies, two (2) reinsurance companies, and four (4) reinsurance companies.
(4) Microinsurance and Takaful firms, respectively.
Is insurance a growing industry?
Is the insurance sector expanding? Yes, particularly now that individuals are becoming more financially aware and risk averse. The worldwide life insurance industry alone is anticipated to reach $3.6 trillion by 2022.