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LIST OF INSURANCE COMPANIES IN NIGERIA

Insurance is an important service that opens up people families and colleagues and creates confidence and peace for future purposes. Life, property, health, goods, enterprises and so on has been the major forms of insurance. Insurance has been in existence long before the country Nigeria became independent which has been bringing and imparting effective changes. {List Of Insurance Companies In Nigeria}.

In past years, insurance has experienced more evolution and has been widely spread, though, not in comparison with other countries in the world. More so, insurance in Nigeria has developed quite poorly, the reason is not only from the economic sector but from the insurance services themselves.

LIST OF INSURANCE COMPANIES IN NIGERIA AND WHAT YOU NEED TO KNOW

  • EVOLUTION OF INSURANCE IN NIGERIA

European companies since the colonial period have been in good form in the NIM (Nigerian insurance market) since the 1960s and have also been the essentialities of the current situation faced by insurance itself. Goods sent to the centers of the empire are insured by this companies.

After the political independence of this colonies, branches of these companies in Africa were nationalized. With the support of the UN, the government tried forming their own insurance market. Thereby, minimizing or avoiding the outflow of currency.

In the newly liberated countries, UNCTAD discovered the importance of insurance officially in the 1960s which speeds up their free trade and economy development. the parliament of Africa countries actualizing insurance relations also facilitated the adoption of a number of bills.

List Of Insurance Companies In Nigeria

List Of Insurance Companies In Nigeria

The state monopoly on insurance was introduced in 22 countries with Nigeria inclusive. Nigerian development of insurance started everything from the appearance, in particular, occurring after the report was commissioned by J.C Obande.

APPEARANCE OF REINSURANCE COMPANY

Some reinsurance company at the same time appeared in Africa. They were first created in Egypt, followed by Kenya, Morocco, and Cameron, and later in Tunisia, Algeria, Sudan, Ghana and finally in Nigeria. The state fully possesses all the shares of these organizations.

PRIVATE OWNERSHIP OF INSURANCE COMPANIES IN NIGERIA

The ownership custom started shifting from state to private in the early 90’ making Nigerian economy and Africa face the counter-trend, while the world bank increases the pressure and the insurance market with immediate effect start moving towards liberalization. Of recent, the state monopoly was maintained in the insurance industry which was eventually abandoned. With his action, effective activities of local reinsurers were relatively debased. elimination was the result since most of them could not withstand the competition.

OLDEST INSURANCE COMPANY IN NIGERIA

This company was established in the year 1918, which made it the first Nigeria insurance company in history. Nigeria’s oldest insurance company (indigenous to Nigeria) is known as African Insurance Company Limited. Its operation (service provision and appearance) started fully in 1958.

LIST OF INSURANCE COMPANIES IN NIGERIA

Going by the main objective of this article which is to give a full list of 24 insurance companies in Nigeria, I will like to start with this that over a thousand of insurance companies are existing in the country presently which makes it tedious to pick the best amongst them. Therefore, to pick the right insurance company, to secure you Healthwise, property-wise, security-wise, profit wise and so on, certain factors must be considered, such as integrity, reliability, and most importantly quick response. However, the companies listed below have been considered to be part of the best if not the best over time in the country.

  1. ACEN INSURANCE COMPANY

A composite insurer that issues life and non-life policy

  1. ADIC INSURANCE

Personal offers like a car, home, and life insurance are issued by this company.

  1. AFRICAN ALLIANCE INSURANCE COMPANY LIMITED

Over the years, African alliance insurance company limited has been famous throughout the country for its good reputation.

  1. AIICO INSURANCE PLC

The largest life insurer in Nigeria and an issuer of general business insurance has been also over the years. The success of the company has been archived through its potential evaluating abilities, realistic goal settings and necessary actions to achieve them. The objectives and organizational basis may be reviewed, changing their strategies too but at the end ensure to attain optimum performance.

  1. A&G INSURANCE

20 years’ experience combined with the safety of an underwriting company like A&G Insurance providing solutions to financial issues and risks with an outstanding innovation and efficiency of the next generation.

  1. CONSOLIDATED HALLMARK INSURANCE

This insurance company is a well-known company in Nigeria, also with their customer oriented and a high-profile technology-driven company conceived by its stakeholders in Nigeria to be among the top five risk underwriter within a short term.

  1. CONTINENTAL REINSURANCE

Continental insurance company was in 1985 was registered as a professional reinsurance company under the companies act 1968 and in the same vain obtained a license to transact business reinsurance for non-life in the late month of 1986. In January 1987, it commenced business and life reinsurance business commenced in January 1990. continental reinsurance was converted to a public limited company (plc) in 1999.

  1. CORNERSTONE INSURANCE PLC

What makes cornerstone dynamic was its way of offering services in line with modern visions. The company was registered at the inception of undertaking some classes of business insurance.

  1. CRUSADER INSURANCE PLC

A highly reputable company is the crusader insurance (Nigeria) renowned for its efficient service delivery prompt claim settlement. Its operations are highly backed up with experienced and highly competent professionals and national network with full computerization.

  1. CUSTODIAN INSURANCE PLC

Custodian insurance is exceptional among other competitors and is rated among the best 10 in Nigeria.

  1. EQUITY LIFE INSURANCE CO.LTD

This company which is also known as first Nigeria insurance company limited was incorporated in the year 1983 and was given a licensed life specialist company to transact pension business and life. The operation commenced in the company on the 2nd of October 1989and still keeps its head high till date.

  1. GOLDLINK INSURANCE CO LTD

Goldlink insurance plc is one of the highly capitalized insurance companies in Nigeria authorized with a share capital of #5.3 billion.

  1. GUARANTY TRUST ASSURANCE PLC

GTA has been committed to providing excellent service with their incomparable activities at global best.

  1. INDUSTRIAL AND GENERAL INSURANCE PLC (IGI)

To reach a purported goal in your business and conquer new frontiers in with a solid backup of a dependable and reliable forward thinking and better insurance partner can only be secured under the insurance of industrial and general insurance company plc (IGI).

  1. INTERNATIONAL ENERGY INSURANCE PLC

International energy insurance company limited came up in 2003 when investors and management of a group acquired 70% of global assurance ltd which was 34years older than international energy insurance plc.

  1. LASACO ASSURANCE PLC
  2. LAW UNION AND ROCK INSURANCE PLC
  3. LEADWAY ASSURANCE COMPANY LIMITED
  4. LINKAGE ASSURANCE PLC
  5. MUTUAL BENEFIT ASSURANCE PLC
  6. NEM INSURANCE PLC
  7. NIGER INSURANCE PLC
  8. NAICOM
  9. NIGERIA DEPOSIT INSURANCE CORPORATION (NDIC)

However, further and proper investigations about these companies should be carried out before making an agreement or signing a deal with the company.

EUROPEAN INFLUENCE

European standard and certain insurance practices were introduced by the European insurance companies, serving as the basis for NIM (Nigeria Insurance Market) with the world reinsurance market and for local reinsurers.

The national insurance commission was originated in 1997 and development of insurance market in 1998, became much more effective and liberal. As at this time, 157 of the 580 African insurance companies were established in Nigeria.

CONTRIBUTION OF FAIR TO THE HISTORY OF INSURANCE IN NIGERIA

FAIR (Federation of Afro-Asian Insurers and Reinsurers) contributed massively to the functioning and development of Nigeria’s insurance market. This company started her operation in the year 1964 in order to further her course as a company and strengthen the collaboration between Afro-Asian insurers and reinsurers. FAIR, presently consist of 188 insurance and reinsurance organizations. Government’s refusal to regulate the insurance objectives should not be linked with insurance market liberalization but should relatively dignify the entering protocol and ownership forms of pluralism. Activities of the insurers should be under control which could be quite difficult.

1976 NIGERIAN INSURANCE ACT

The Nigerian insurance act was signed in 1976, when the insurer’s solvency was of no regulatory requirements, although, the situation tends to be changing from time to time. However, a new insurance act was put in place as at 2003 and all insurers and reinsurers were authoritatively required to have a new increased and higher capital and standard respectively. Funds from the bank and real estate properties were no longer accepted by the Local National Insurance Commission (NAICOM).

Therefore, Nigeria experienced the development of insurance through the following factors:

  • European insurance companies form colonial heritage in branches:
    • European company branches, bringing in their standard and regulations, served as good basic example and impulse, which automatically connected African and world market of insurers and reinsurers, leading to increased domestic market capacity.
  • Local competitors and emergence activity prevention
  • Voluntary self-isolation

Self-regulation through competition and professional associations has led to the ability to lose and reducing insurers in the insurance market.

IMPORTANCE OF INSURANCE IN NIGERIA

Each and every individual’s life is filled with risks and uncertainty even families, businesses, properties, and assets are also prone to various forms and hierarchy of risks. Loss of life, health, assets, property are the risks included, but unfortunately, it is very impossible to prevent unwanted events from occurring. Individuals and businesses are regarded as protection products developed in the financial world, compensating them with financial resources against such losses. Insurance itself serves as a financial product that decreases or eliminates totally the cost or effect loss impugned by various forms of risk. The economic growth of the nation has been as a result of significantly contributed efforts of the insurance sector apart from its individuals and businesses protection services. Insurance also provides stability to businesses functioning and highly generating long-term resources financially for industrial execution of projects. insurance sector among other things also increases the standard and rate of savings among individuals and also serves as employment opportunities for millions in a country like India where employment and savings are very crucial and essential.

Why the insurance sector of any economy is key to its development  is due to the following underlisted reasons;

  • Provides security to individuals and safety to businesses: insurance sector provides monetary support by decreasing uncertainties faced by every lifecycles step of individual and businesses. An ideal risk of reducing mechanism is provided against financial distress potentially caused to individuals and businesses. A typical instance is 15% approximate inflation growth per annum on medical, whose procedure cost is enough to disrupt a well-analyzed family budget. Whereas, a health insurance guarantees financially, secured family in terms of business insurance. Financial compensation is provided for accidents, theft, marine-related mishaps activities, fire etc.
  • Long-term financial resource generation: funds are generated from the Insurance sector by obtaining premiums from uncountable policyholders. The long-term nature of these funds is usually invested in infrastructure long-time assets (such as power plant dams, roads sea and airport etc.) significantly needed for nation-building. Big investments, increase employment opportunities thereby, leading to the formation of capital in the economy.
  • Promotion of economic growth: significant impact has been made by the insurance sector by the overall mobilizing of the economy by accumulating insurance turn into productive investments and domestic savings which on the other part, enables reduction in losses, trade, and commerce activity promotion, financial stability, and other results into sustainable and reliable economic growth and development. Therefore, the crucial role played by insurance is to sustain and maintain economic growth.
  • Serves as family support during medical emergencies: family well-being is so much important because the health status of family members is the greatest concern of most people ranging from elderly parents to newborn children who will in one way or the other, require medication and hospitalization which would play important aspect while ensuring the families well-being. Rising costs of medical treatment and soaring medicine prices will drain savings as fast as possible if not well planned and prepared.

No one is exempted to falling victim to critical illness (such as cancer, stroke, heart attack and so on) even when not expected and the rate at which medical expense rises is of great concern. Protection of individuals against financial and health risk in hand with a health insurance policy, if insured in case of medical emergency, gets support financially which is a policy under Medical Insurance.

  • Risk spread: insurance basic principle is to spread risk among the mass where facilitation of insurance moves risk loss from an insured to an insurer. Amongst this large population, insurance policies are generated through premium payment to the insurer. Out of the corpus Funds collected from millions of policyholders, compensation funds are being deducted whenever a loss occurs or is experienced.

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CONCLUSION ON THE LIST OF INSURANCE COMPANIES IN NIGERIA

We have been able to list and show some facts about an insurance company in Nigeria. Sit back and broaden your scope about Nigeria insurance.

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Updated: August 4, 2018 — 3:55 pm

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