Nigeria Insurance Report

Published 26 January 2015

  • 70 pages
  • Instant access to your report online and PDF format through your account library
  • Free related articles sent monthly
Nigeria Insurance Report

BMI View: The Nigerian insurance market remains at an embryonic stage of development with the combined assets of the country's insurers comprising only a tiny percentage of GDP and total premiums lagging behind more developed markets such as South Africa. That said, the past few years have seen considerable expansion in the sector, as rapid economic/population growth and rising prosperity have boosted demand for life and non-life products. However, future growth will be mitigated by currency market movements linked to falling oil prices.

By all measures, insurance remains a relatively undeveloped segment of Nigeria's financial services sectors, comprising just 0.3% of overall GDP in 2014 in terms of the value of gross premiums written. This low rate of penetration is reflective of a number of factors which have combined to undermine purchases of insurance coverage. These include low income levels and awareness of insurance products and their benefits as well as a lack of transparency regarding the operating practices of some operators.

From a very low base, the past few years have seen a steady increase in the value of premiums written. This has been particularly apparent in the life insurance market where gross premiums increased by just under 14% a year on average in USD terms over 2012-2014.

From a demographic perspective, this recent growth trend reflects the rapid expansion of the country's professional and middle classes as the economy has undergone increasing diversification and expansion in areas such as financial services. As awareness and advertising surrounding life insurance products have rise so too has the popularity of group-based life insurance coverage among public and private sector corporations. The sector has also benefited from the increased entry of foreign life insurance providers such as Old Mutual in the past few years. This has been due in large part to the elimination of fringe players as a result of the regulator's 2008 Market...

Table of Contents

Executive Summary
Table: Nigeria's Total Premiums, 2010-2017
Key Insights And Key Risks
SWOT Analysis
Nigeria Insurance Industry SWOT
Nigeria Political SWOT
Nigeria Economic SWOT
Nigeria Business Environment SWOT
Life Sector Overview
Middle East And North Africa Life Sector Overview
Table: Middle East And North Africa's Life Premiums, 2010-2017 (US$mn)
Nigeria Life Sector Update
Life Industry Forecast Scenario
Table: Nigeria's Total Life Premiums, 2010-2017
Growth Drivers And Risk Management Projections
Table: Nigeria's Insurance Key Drivers, Demographics, 2010-2017
Non-Life Sector Overview
Middle East And North Africa Non-Life Sector Overview
Table: Middle East And North Africa's Non-Life Premiums, 2010-2017 (US$mn)
Nigeria Non-Life Sector Update
Non-Life Industry Forecast Scenario
Table: Nigeria's Total Non-Life Premiums, 2010-2017
Growth Drivers And Risk Management Projections
Macroeconomic Outlook
Table: Nigeria - Economic Activity, 2011-2016
Table: Nigeria's Macroeconomic Data And Forecasts, 2010-2017
Political Stability Outlook
Table: Nigeria's Insurance Key Drivers - Disease Adjusted Life Years, 2010-2017
Islamic Finance
Insurance Risk/Reward Ratings
Table: Nigeria's Insurance Risk/Reward Ratings
Table: Middle East and Africa Insurance Risk/Reward Ratings
Competitive Landscape
Company Profiles
Leadway Assurance Company
Mansard Insurance
Demographic Outlook
Table: Nigeria's Population By Age Group, 1990-2020 ('000)
Table: Nigeria's Population By Age Group, 1990-2020 (% of total)
Table: Nigeria's Key Population Ratios, 1990-2020
Table: Nigeria's Rural And Urban Population, 1990-2020
BMI Methodology
Insurance Risk/Reward Ratings
Table: Insurance Risk/Reward Indicators And Rationale
Table: Weighting Of Indicators

The Nigeria Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Nigeria Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Nigerian insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Nigeria to test other views - a key input for successful budgeting and strategic business planning in Nigeria's insurance market.
  • Target business opportunities and risks in Nigeria through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.


The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%


'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc