Nigeria Insurance Report

Published 24 April 2015

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Nigeria Insurance Report

BMI View: Nigeria's insurance sector remains at an embryonic stage of development with the combined assets of the country's life and non-life insurers comprising only a tiny percentage of GDP and total premiums lagging behind more developed regional markets such as South Africa. Ec onomic and population growth and rising prosperity are boosting demand for life and non-life products , however, in the short term at least, growth will be mitigated by currency market movements linked to falling oil prices.

In local currency terms, life and non-life insurance premiums in Nigeria are expected to sustain a high level of growth over the next half-decade through to 2019 with life insurance being the outperformer of the two segments we monitor. However, as oil prices continue to fall, we forecast a contraction in the USD value of premiums written across the market in 2015 and 2016, which comes as a result of depreciation of the Nigerian naira against the US dollar. Life premiums are expected to contract by 13.5% in 2015 while non-life premiums will decrease by 17.9% in US dollar terms.

By all measures, insurance remains a relatively undeveloped segment of Nigeria's financial services sectors, comprising just 0.1% of overall GDP in 2015 in terms of the value of gross life premiums written and 0.2% of GDP in terms of gross non-life premiums written. This low rate of penetration is reflective of a number of factors which have combined to undermine purchases of insurance coverage, including low income levels and limited awareness of insurance products and their benefits as well as a lack of transparency regarding the operating practices of some operators. Challenges that have constrained the growth of the non-life segment in the past have included non-collection of premiums, a challenging economic and financial environment and a large number of sub-scale fringe operators. Challenges facing the life segment have included a lack of trust that is necessary for...

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.

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'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