Insurance in Nigeria

Introduction

To start with, we need to have an insight of what Insurance is…

What is Insurance?

Insurance can be defined as an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium or a thing providing protection against possible eventuality.

According to Cambridge English Dictionary, Insurance is” an agreement in which you pay a company some amount of money and they pay your costs in case of accident, injury or death of a loved one.”

According to web finance business dictionary, insurance is “a business that provides coverage in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange of premium payments.”

Since every business involves risk, there is always a higher probability for either a small loss or large loss. In this post, we will be looking at Insurance in Nigeria, the different types of Insurance Policies, challenges, way forward and the different verified Insurance companies across the country. For the very latest in Nigeria Insurance News, visit Orientalnews Nigeria

Overview

As we know, there is risk everywhere so, a perfect and smooth life can face an unexpectedly disturbance in the event of an abrupt situation like accidents, sickness, loss of property or death of a loved one. A major decision that can assuredly diminish the effect of the occurrences is to be engaged in an insurance policy scheme.

Insurance in Nigeria has been in existence as far back as more than sixty years ago. During the colonial period, Insurance companies were of European origin. An example of such is the Royal Exchange Assurance Agency which was closely associated with insurance in the country.

But some years later on (before independence), Nigeria came up with its own first original Insurance company which was named the African Insurance Company Limited. The company was established in the year 1958. For the latest news on Nigeria Insurance, please visit OrientalNews Nigeria

Later on, the Federal Government of Nigeria started supporting the establishment of state-owned Insurance companies but after a while, in the early ninety’s, private-owned insurance companies began to take over and replaced the state-owned insurance firms. The FG had to systemize the Insurance Industry which led to the establishment of National Insurance Commission (NAICOM) in 1997.