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Are you ready to know the History of insurance in Nigeria? – We’ve discovered what you don’t know and if you really need to know, just keep on reading.
Insurance helps you protect your property, maintain health and secure your vehicle from damages. We’ve got you covered on all you need to know about insurance and how the many insurance companies in Nigeria came into existence.
Apart from car insurance, health insurance and life insurance, there are still other kinds of insiraw that can help protect your life and belongings.
Evolution of insurance: Beginning of insurance
Until the 1960s, the leading role in the Nigerian insurance market was played by European companies. All goods were insured by the European companies. But big things started happening when the African companies under these European insurance companies gained political independence, African branches of these companies were nationalized, the government tried to form their own insurance markets to avoid currency outflows abroad. And they managed to do this with the support of the UN. The united nations played a major role in bringing insurance to Nigeria.
Everything about insurance started from the appearance of the Nigerian department of insurance. J.C OBande Commission gave a report about insurance importance in Nigeria, it was then that insurance business started becoming popular in Nigeria.
Reinsurance companies: State ownership
The state was in total control of all the share of insurance companies in Egypt, Kenya, Morocco, Tunisia, Algeria, Cameroon, Nigeria and finally in Ghana and Sudan.
Private ownership of insurance companies in Nigeria and what you must know
In the early 90’s, the African and Nigerian economy faced opposing trend: under the pressure of the World Bank, insurance markets began to move towards liberalization. The form of ownership began to shift from state to private. Until recent times, they maintained the state monopoly in the insurance industry, but eventually, they abandoned it. This has undermined relatively effective activities of local reinsurers. Many of them could not stand the competition and were eliminated.
What is the oldest insurance company in Nigeria?
1918 – was the time of the creation of Royal Exchange Assurance Agency. This was the first insurance company in the history of insurance in Nigeria.
In 1958, the African Insurance Company started providing serious insurance services to Nigerians, it is the first Nigerian owned insurance company.
Thus, the development of insurance in Nigeria was influenced by the following factors:
– Colonial heritage in the form of branches of European insurance companies;
They brought their own standards and regulations, which, of course, served as a good impulse and an example. European branches initially connected African insurance market with the world reinsurance market, which consequently increased the capacity of the domestic market.
– Prevention of the emergence and activity of local competitors;
– Voluntary self-isolation;
Insurance market has now been narrowed to a few insurers, losing the ability to self-regulate through competition, as well as through professional associations.
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