Insurance

While demographics alone should mean there is plenty of room for growth, the insurance sector’s recent performance has not been sufficient for it to reach the critical mass necessary to improve its image with clients and enhance its capacity to underwrite large risks. According to the Nigerian Insurance Association (NIA), insurance penetration reached 0.6% in 2011, far lower than other African countries, such as Kenya (2.5%) or South Africa (16%). The market at its current size is certainly crowded: there are 30 general firms, 16 life insurers and nine composite underwriters. However, recent divestment and consolidation efforts have already pared the industry down, with further mergers expected to decrease its size even further. This chapter contains an interview with Dave Uduanu, Chairman, Pension Fund Operators Association of Nigeria.