Insurance

With a total premium value of $1.6bn in 2011, Nigeria’s insurance market is the biggest in West Africa, but in a wider context the market remains relatively undeveloped and coverage in the retail market is mostly limited to motor insurance. Issues including prohibitive costs, inconsistent enforcement of mandatory coverage, fake insurers and policies damaging the sector’s reputation, and a fragmented market of small and undercapitalised providers have presented impediments to the sector’s growth. Although top-line expansion has not fulfilled expectations for the overall value of the market, insurers and the regulator are continuing to explore avenues for growth while removing obstacles. A leap in market size is expected in the current decade thanks to continued policy efforts and steady growth in disposable incomes for middle-class Nigerians. This chapter contains an interview with Fola Daniel, Commissioner for Insurance, National Insurance Commission.