Insurance provides not only peace of mind, but also some financial protection against unexpected accidents and other life dangers. For example, you might want to protect your family after you die or lose the ability to earn money. You might also want to protect your home, car, or other valuables in the event of theft or a disaster.
An insurance company is a company that provides insurance services.
We can trace the origins of insurance in Nigeria back to the introduction of British trading companies. These companies had to manage the risks that came with their operations.
As a result, they had to form insurance agencies that obtained their licenses from outside the country. These licenses allowed these businesses to make it easier to provide insurance and process claims.
During this time, Nigeria’s insurance market began to expand rapidly. However, due to the effects of the Second World War, it grew slowly in the 1919s and 20s.
The insurance industry, on the other hand, started up and flourished at a quicker rate after the war ended.
They founded the first indigenous corporation in Nigeria in 1958. When Nigeria won independence on October 1st, 1960, there were about four ingeniously owned insurance businesses.
Since that time, the insurance industry has been rapidly expanding.
Furthermore, the Nigerian Federal Government established the National Insurance Commission in 1997. NAICOM:
They’ve assigned them the task of managing and organizing insurance activity in Nigeria.
According to NAICOM, there are 58 insurance companies in Nigeria as of now.
Insurance companies’ functions
Insurance firms’ jobs are to assist their customers in risk management. Purchasing insurance from an insurance company entails shifting a portion of your financial risk to the company. If you are not insured, you will be responsible for the financial risk.
You will become the insured or beneficiary once you have purchased the insurance. You pay a “premium” to the insurance company in exchange for them taking on the risk for you. If you get hurt in an accident that happens during the time period of the contract, you can file a claim for money.
Different types of insurance
Life insurance and general insurance are the two types of insurance available. Under a life insurance contract, after the insured’s death, the insurance company will make a lump sum payment to the beneficiary. Other aspects of life insurance, such as savings, can be included.
General insurance is the second type of insurance. General insurance doesn’t cover things like death, but it does cover things like physical injury or property damage caused by an accident.
One of the reasons Nigerians get insurance is to protect themselves and their belongings from things that they didn’t expect to happen.
These events can eat up a significant portion of their budget, something they would prefer to avoid. As a result, insurance is required.
Individuals and businesses use insurance to protect their money and properties from risks that could cause them to lose everything.
There are top insurance firms in Nigeria that assist those who want to protect their future from such a calamity. You must, however, know what you are searching for, how an insurance agency operates, and how to choose the best one.
There are a lot of things to think about when choosing an insurance company in order to do this.
For example, these elements are required to avoid being persuaded by fanciful branding.
What Should You Think About When Choosing an Insurer?
They are as follows:
1. The Image of the Company
You should look for reviews and breaking news about the brand on the internet. This is due to the fact that the company’s track record should provide you with insight into its strengths and skills.
2. Legal Recognition
When you buy insurance, you need to make sure that the company you choose is legal and approved by the Nigerian government.
3. The Areas of Coverage
This is an important consideration when choosing an insurance company. Choose the level of coverage that best meets your requirements. For example, if your insurance company doesn’t cover specific scenarios, such as business ideas, it’s an indication that you should look for another provider.
4. Financial Stability and Cost-Effectiveness.
It’s critical to learn how the insurance company performs in a down economy and how this may affect you. To find the information you need, look into stock ratings and business resources.
When searching for and ultimately selecting a Nigerian Insurance Companies, you may want to think about price. To put it another way, if the price is reasonable, go for it. If it isn’t, go somewhere else.
Insurance arrangements should be incorporated into your financial strategy to protect yourself, your family, and your personal assets, as well as to avoid certain dangers. So, we’ve made a list of the top 10 insurance companies in Nigeria, which you can read about here.
List of Insurance Companies in Nigeria
- African Alliance Insurance Company Ltd
- AIICO Insurance Plc. 004
- Alliance & General Insurance Plc.
- ALLIANZ NIGERIA INSURANCE PLC
- Anchor Insurance Company Ltd
- ARM Life Plc.
- AXA Mansard Insurance plc.
- Capital Express Assurance Limited
- Consolidated Hallmark Insurance Plc.
- Continental Reinsurance Company Plc.
- Cornerstone Insurance Plc.
- Custodian & Allied Insurance Limited
- Custodian Life Assurance Limited
- FBN General Insurance Limited
- FBN Insurance Limited
- Fin Insurance Company Limited
- Great Nigeria Insurance Plc.
- Guinea Insurance Plc.
- Goldlink Insurance Plc.
- International Energy Insurance Plc.
- Industrial & General Insurance Plc.
- JAIZ TAKAFUL INSURANCE PLC
- KBL Insurance Limited
- LASACO Assurance Plc.
- Law Union & Rock Insurance Plc.
- Leadway Assurance Company Limited
- Linkage Assurance Plc.
- Tangerine Life Insurance Ltd
- Mutual Benefits Assurance Plc.
- Mutual Benefits Life Assurance Ltd
- NEM Insurance Plc.
- NICON Insurance Plc.
- Niger Insurance plc.
- Nigeria Reinsurance Corporation
- Nigerian Agricultural Insurance Corporation
- NSIA Insurance Ltd
- Old Mutual Nigeria General Insurance Company Limited
- Old Mutual Nigeria Life Assurance Company Limited
- Prestige Assurance Plc.
- Prudential Zenith Life Assurance Company Limited
- Regency Alliance Insurance Plc.
- Royal Exchange Prudential Life
- Royal Exchange Prudential Life
- Unitrust Insurance Nigeria Limited
- Sovereign Trust Insurance Plc.
- STACO Insurance Plc.
- Standard Alliance Insurance Plc.
- Sterling Assurance Nigeria Ltd
- SUNU Assurance Plc.
- UNIC Insurance Plc.
- Universal Insurance Plc.
- Veritas Kapital Assurance Plc.
- Coronation Insurance
- Coronation Life Assurance Lt
- Zenith General Insurance Company Limited
- GOXI Micro insurance
- NOOR Takaful Plc.
- Cornerstone Takaful Insurance Co. Ltd
Nigeria’s insurance industry has grown from strength to strength throughout the years. This industry, it is safe to say, has a lot of potential that will be realized over time.