According to a Daily Independent investigation, over N100 billion in foreign direct investments into the insurance sector have benefited over 20 insurance firms in the last ten years.
Old Mutual, Sanlam, AIICO, Leadway Assurance, Mutual Benefits Assurance, Tangerine General Insurance Limited, Royal Exchange General Insurance Limited, NEM Insurance Plc., Tangerine Life, Prestige Assurance, Stanbic IBTC General Insurance Limited, and Prudential Life Assurance Limited are among these companies.
AXA Mansard, SUNU Group, and Saham are already active in the industry, collaborating with international partners who recognize the enormous potential for development and growth in the sector. Others are still in talks to secure additional funds to expand their capital bases.
The National Insurance Commission (NAICOM) increased the capital requirements for insurance and reinsurance companies from N2 billion to N8 billion for life insurers, N3 billion to N10 billion for general business underwriters, N18 billion for composite insurers, and N20 billion for reinsurance companies, with a one-year compliance deadline.
Read also: Printing of N60 billion by the Central Bank of Nigeria (CBN): PDP flayed the Minister of Finance
32 insurance companies are listed on the Exchange, with 14 specialist life insurance companies, 28 general insurance companies, 13 composite insurance companies, two takaful insurance companies, and two reinsurance companies.
FDI has been helping the Nigerian insurance industry raise capital and expand operations, with a focus on technology that requires a large investment.
The COVID-19 pandemic, according to analysts, highlighted the need for the insurance industry to be technologically driven from onboarding to claims resolution. Furthermore, most products in the Nigerian space, such as oil and gas, engineering, and even some life insurance policies, are denominated in dollars, necessitating FDI.
Although analysts were unable to obtain data on cash inflow as of the time of this report, the estimated value was stated to be at least N100 billion.
Read also: Constancy Financial institution proclaims board retirements and new appointments: Fidelity Bank
Our research shows that non-life insurance premiums increased significantly between 2000 and 2007, before declining at the end of 2007. It was noted that the decline in non-life insurance premiums in 2007 is partly explained by the financial crisis of the same year, which resulted in lower income and consumption.
Foreign direct investments have been steadily increasing since 2005, reaching a high point in 2007 before plummeting in 2010.