Insurance In Nigeria
Insurance market in Nigeria is highly regulated and there are various laws regulating its business and practices. Examples are: -
1. Insurance Act 2003.
2. National Insurance Commission Decree of 1997.
3. Motor Vehicle (Third Party) Insurance Act.
4. Banks and other Financial Institutions Act.
5. Companies and Allied Matters Decree of 1990.
Some of the regulations in insurance business are as follows: -
· All insurance companies must be duly registered with National Insurance Commission (NAICOM).
· Most companies are members of the Nigerian Insurers Association (NIA), although this is largely optional.
· All insurers must be members of the Chartered Insurers Institute of Nigeria.
· In September, 2005 the Federal Government directed underwriting and reinsurance firms in the country to raise their capital base by February 2007. All insurance companies where therefore mandated to meet the following compulsory minimum capital base: -
o Life Business operators must have a minimum of N2 billion.
o General Insurance Business operators must have a minimum of N3 billion.
o Reinsurance Business operators must have a minimum of N10 billion.
o 10% of this capital must be in statutory deposit with the Central Bank of Nigeria (CBN).
· The Federal Government has also mandated a compulsory level of local underwriting of risks emanating from oil and energy operations across the country in order to enhance the level of economic activity in Nigeria.
Following the recapitalization guidelines, Leadway Assurance Company Limited provides General & Industrial Property insurance business (such as Motor, Marine, Aviation, Building, Engineering and Money), Casualty (such as Worker’s Compensation, Public Liability). It also offers subsidiary financial services like Bond, Secured Credit, miscellaneous financial losses and Fund/Portfolio management. Its subsidiary, Leadway Life Assurance Company Limited provides Life Assurance & Investment Policies (such as Endowment, Deposit, Annuities and Critical Illness).
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