When it comes to insurance, Nigeria is by far one of the least to be mentioned. Developed countries have developed well-established insurance schemes to cater for health care, education, losses, hazards, and other emergencies. But insurance in Nigeria, as well as other developing countries of the world, is still at square one.
Insurance is a strategic means of protecting individuals, groups, or organizations from financial loss resulting from predictable or unpredictable events surrounding their activities. It is a form of risk management, primarily used to wedge against the risk of a contingent or uncertain loss.
Insurance services also include the provision of alternative sources of payment for services like health, education, etc, when the means are limited and the services are of utmost priority. As it relates to health, insurance had been proposed as the best possible solution to health financing worldwide. Areas of the world where health insurance is fully implemented witness more health facility attendance than areas where only out-of-pocket payment is available.
Insurance in Nigeria has not seen so much patronage for a number of reasons but that doesn’t imply that insurance services are totally unavailable within the country. There are a number of insurance companies in Nigeria, a number that would amaze you if you have not seen a post like this before.
Insurance services are offered by insurance companies (referred to as the insurer), to individuals or groups, referred to as the insured. These technical terminologies related to insurance, insurer, insured, premiums, policy, etc, are not only hard to understand by Nigerians but also appear very strange to an average Nigerian. This may be partly due to the problems that have suppressed insurance services within the country, and partly due to the unawareness of Nigerian citizens of the availability of insurance companies and services within the country.
In an attempt to remove the cloak that covers many notable insurance companies in Nigeria, I am going to attempt to give a complete list and descriptions of some noteworthy insurance companies in Nigeria. I hope this helps you understand better what insurance in Nigeria requires and to help you make an informed decision on which of these companies to begin your insurance journey with.
Insurance Coverage By Nigerian Insurance Companies
There are a wide array of activities or property that are covered by insurance companies in Nigeria. A concise list would include the following:
- Life Insurance
- Motor insurance
- Health insurance
- Travel insurance
- Property insurance
- Mobile insurance
- Cycle insurance
- Bite-size insurance
Apart from the Bite-size insurance above, I guess the names already give a pointer as to what these insurance services cover. Life insurance covers the costs to family and business in event that one loses one’s life due to professional, business-related, or other activities. Motor, health, travel, etc, look quite self-explanatory.
Before I go on to talk about the insurance companies in Nigeria, I would like to introduce you to some insurance-related terminologies for a better understanding of this write-up for better decision-making in case you are new to insurance and want to use this as a guide to registering for insurance in Nigeria.
Terminologies
- Insurance policy – The written contract effecting insurance, or the certificate thereof, by whatever name called, and including all clauses, riders, endorsements, and papers attached thereto and made a part thereof.
- Coverage/insurance plan – The specific protection provided by a plan against the results of the hazards insured against, that is, the property it protects against.
- Premium – A periodic payment by the insured to the insurance company in exchange for insurance coverage.
- Annuity – A contract that provides for a stipulated sum payable at certain regular intervals during the lifetime of one or more persons, or payable for a specified period in exchange for a specified premium. There are various types of annuities, such as immediate and deferred, which can be fixed or variable.
- Life insurance – Insurance in which the risk insured against is the death of a particular person, the insured, upon whose death, while the plan is in force, the insurance company agrees to pay a stated sum or income to the beneficiary.
- Insurance broker – A person who acts as the representative of the applicant for insurance. Although brokers are compensated with a commission from the insurance company (just like agents), they do not represent the insurer. Their sole duty is to get the best possible coverage for their clients at the lowest possible cost.
- Investment plus plan
- Immediate annuity plan
- Tuition protection plan
- Auto insurance plan
- Travel insurance plan
- Capital plan, etc
