Governance, Risk and Compliance – The Nigerian Insurance Industry

GlobalData’s 'Governance, Risk and Compliance – The Nigerian Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Nigeria.

It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together GlobalData’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.


• The report covers details of the insurance regulatory framework in Nigeria.

• The report contains details of the rules and regulations governing insurance products and insurance entities.

• The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.

• The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.

• The report provides details of taxation imposed on insurance products and insurance companies.

Key Highlights

• The Nigerian insurance industry is regulated by Naicom.

• Workers’ compensation insurance, motor third-party liability, healthcare professional liability insurance, and builder’s liability insurance are compulsory.

• The government of Nigeria allows 100% foreign direct investments in the insurance industry.

• Composite insurance is permitted in Nigeria.

• Non-admitted insurance is not permitted. However, exceptional risks can be insured with unauthorized insurer, provided prior approval is obtained from Naicom.

Reasons to buy

• Gain insights into the insurance regulatory framework in Nigeria.

• Track the latest regulatory changes, and expected changes impacting the Nigerian insurance industry.

• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.

• Understand key regulations and market practices pertaining to various types of insurance product.

Companies mentioned

African Alliance Insurance Company Ltd

Alliance & General Insurance Life Assurance

Capital Express Assurance Limited

Anchor Insurance Company Ltd

LASACO Assurance Plc

Oasis Insurance Plc

Standard Alliance Insurance Plc

Leadway Assurance Company Limited

Nicon Insurance Plc

Niger Insurance Plc

Union Assurance Company Ltd

Continental Reinsurance Company Plc

Nigeria Reinsurance Corporation

Table of Contents

1 Introduction

1.1 What is this Report About?

1.2 Definitions

2 Governance, Risk and Compliance

2.1 Legislation Overview and Historical Evolution

2.2 Latest Changes in Regulations

2.3 Legislation and Market Practice by Type of Insurance

2.3.1 Life insurance

2.3.2 Property insurance

2.3.3 Motor insurance

2.3.4 Liability Insurance

2.3.5 Marine, aviation and transit insurance

2.3.6 Personal accident and health insurance

2.4 Compulsory Insurance

2.4.1 Workmen’s compensation insurance

2.4.2 Motor third-party liability insurance

2.4.3 Builder’s liability insurance

2.5 Supervision and Control

2.5.1 International Association of Insurance Supervisors (IAIS)

2.5.2 African Insurance Organization (AIO)

2.5.3 National Insurance Commission (Naicom)

2.5.4 Nigerian Insurance Association

2.6 Non-Admitted Insurance Regulations

2.6.1 Overview

2.6.2 Intermediaries

2.6.3 Market practices

2.6.4 Fines and penalties

2.7 Company Registration and Operations

2.7.1 Types of insurance organization

2.7.2 Establishing a local company

2.7.3 Foreign ownership

2.7.4 Types of license

2.7.5 Capital requirements

2.7.6 Solvency margins

2.7.7 Reserve requirements

2.7.8 Investment regulations

2.7.9 Statutory return requirements

2.7.10 Fee structure

2.8 Taxation

2.8.1 Insurance premium or policy taxation

2.8.2 Withholding taxes on premium paid overseas

2.8.3 Corporate tax

2.8.4 VAT

2.8.5 Captives

2.9 Legal System

2.9.1 Introduction

2.9.2 Access to court

2.9.3 Alternative dispute resolution (ADR)

3 Appendix

3.1 Methodology

3.2 Contact GlobalData

3.3 About GlobalData

3.4 GlobalData’s Services

3.5 Disclaimer

List of Tables

Table 1: Insurance Industry Definitions

Table 2: Nigeria – Insurance Regulatory Framework Key Features

Table 3: Nigeria – Life Insurance Regulatory Framework

Table 4: Nigeria – Life Insurance Intermediary Remuneration

Table 5: Nigeria – Property Insurance Regulatory Framework

Table 6: Nigeria – Motor Insurance Regulatory Framework

Table 7: Nigeria – Liability Insurance Regulatory Framework

Table 8: Nigeria – Minimum Capital Requirements

Table 9: Nigeria – Corporate Tax Rates for the Financial Year 2016

List of Figures

Figure 1: Nigeria – Insurance Supervision and Control at Various Levels

Figure 2: Nigeria – Insurance Regulatory Frameworks for Company Registration and Operation


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