Insurance

How many Insurance are in Nigeria?

Introduction

How many Insurance are in Nigeria? Insurance plays a crucial role in Nigeria’s financial sector, providing risk management solutions for individuals and businesses. With a growing economy and increasing awareness of the importance of insurance, many Nigerians are curious about how many insurance companies operate in the country.

In this post, we’ll explore:

  • The total number of insurance companies in Nigeria

  • The regulatory body overseeing them

  • Categories of insurance providers

  • Key players in the industry

  • Challenges and opportunities in Nigeria’s insurance sector

How many Insurance are in Nigeria?

How many Insurance are in Nigeria?

How Many Insurance Companies Are in Nigeria?

As of 2024, Nigeria has 58 registered insurance companies licensed and regulated by the National Insurance Commission (NAICOM). These companies are categorized into:

  • Life Insurance Companies (focused on life policies, annuities, and pensions)

  • Non-Life Insurance Companies (covering general insurance like auto, fire, marine, and travel)

  • Composite Insurance Companies (offering both life and non-life insurance)

  • Reinsurance Companies (providing risk coverage for other insurers)

Breakdown of Insurance Companies in Nigeria

1. Life Insurance Companies (12)

These firms specialize in life-related policies, including:

  • Term life insurance

  • Endowment plans

  • Annuities and pension-linked products

Examples:

2. Non-Life (General) Insurance Companies (28)

These companies provide coverage for properties, vehicles, health, and other general risks.

Examples:

3. Composite Insurance Companies (12)

These insurers offer both life and non-life insurance products.

Examples:

  • AXA Mansard Insurance Plc

  • Mutual Benefits Assurance Plc

  • NEM Insurance Plc

  • Royal Exchange General Insurance

How many Insurance are in Nigeria?

How many Insurance are in Nigeria?

4. Reinsurance Companies (6)

Reinsurers help primary insurers manage large risks by sharing liabilities.

Read more on: why do people buy insurance

Examples:

  • Nigerian Reinsurance Corporation (NigRe)

  • Continental Reinsurance Plc

  • Africa Reinsurance Corporation (Africa Re)

Regulatory Body: National Insurance Commission (NAICOM)

NAICOM is the government agency responsible for licensing and supervising insurance companies in Nigeria. It ensures compliance with industry regulations, protects policyholders, and promotes market stability.

Key Functions of NAICOM:

  • Licensing and registration of insurers

  • Setting capital requirements

  • Monitoring financial health of insurance firms

  • Resolving disputes between insurers and policyholders

Top 10 Leading Insurance Companies in Nigeria

While there are 58 insurers, some dominate the market due to their financial strength, customer base, and product offerings.

1. Leadway Assurance Company Limited

  • Founded: 1970

  • Type: Composite

  • Key Products: Life, auto, health, travel insurance

2. AIICO Insurance Plc

  • Founded: 1963

  • Type: Composite

  • Key Products: Life, general, health, annuity

3. Custodian Investment Plc

  • Founded: 1991

  • Type: Composite

  • Key Products: Life, non-life, pensions

4. AXA Mansard Insurance Plc

  • Founded: 1989

  • Type: Composite

  • Key Products: Health, motor, life, asset protection

5. Cornerstone Insurance Plc

  • Founded: 1991

  • Type: Non-life (General)

  • Key Products: Marine, aviation, fire, motor insurance.

6. Mutual Benefits Assurance Plc

  • Founded: 1995

  • Type: Composite

  • Key Products: Life, general, health

7. Sovereign Trust Insurance Plc

  • Founded: 1995

  • Type: Non-life

  • Key Products: Fire, motor, marine, engineering

8. NEM Insurance Plc

  • Founded: 1948

  • Type: Composite

  • Key Products: General, life, health.    You can also read on: health insurance

9. LASACO Assurance Plc

  • Founded: 1979

  • Type: Composite

  • Key Products: Life, general, health

10. FBNInsurance Limited

  • Founded: 2010

  • Type: Life

  • Key Products: Term life, education plans, annuities

Challenges Facing Nigeria’s Insurance Industry

Despite having 58 registered insurers, Nigeria’s insurance penetration remains low (less than 1% of GDP). Key challenges include:

1. Low Public Awareness

Many Nigerians do not understand insurance benefits, leading to low adoption.

2. Trust Issues

Past cases of claim denials and delays have eroded public confidence.

3. Regulatory Constraints

Strict capital requirements make it difficult for smaller insurers to compete.

4. Fraud & Fake Insurance Policies

Some fraudulent agents sell fake policies, discouraging genuine customers.

5. Economic Instability

Inflation and currency fluctuations affect premium affordability.

Opportunities for Growth in Nigeria’s Insurance Sector

Despite challenges, the industry has huge potential due to:

1. Digital Insurance (InsurTech)

Mobile apps and online platforms make insurance more accessible.

2. Microinsurance

Affordable products for low-income earners can expand market reach.

3. Government Policies

Compulsory insurances (e.g., third-party motor insurance) boost uptake.

4. Partnerships with FinTech & Banks

Bancassurance (bank-insurance collaborations) increases distribution.

5. Rising Middle Class

More Nigerians now seek financial protection for assets and health.

Conclusion

Nigeria currently has 58 registered insurance companies, categorized into life, non-life, composite, and reinsurance firms. While the sector faces challenges like low penetration and trust issues, digital innovation and regulatory reforms present growth opportunities.

For individuals and businesses, choosing a reputable insurer is crucial. Always verify a company’s NAICOM license before purchasing any policy.

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