Nigeria s life insurance segment will remain under-developed; however, it will display rapid growth rates of --.- annually over the coming years, reaching NGN---.-bn (USD---mn) in ---- - up from NGN---.-bn (USD---mn) in ----. Accounting for -- of total premiums written in ----, non-life insurance will continue to be the larger insurance segment in Nigeria. ...Over the coming years, non-life insurance will grow by -.- annually to NGN---.-bn (USD-.-bn) in ---- - up from NGN---bn (USD-.--bn) in ----. Key factors accounting for these growth prospects include the demographic changes in Nigeria s large population alongside growth in disposable income, giving rise to a larger middle-class. Over time, these macro trends should attract increasingly more foreign investors seeking to establish a presence in Nigeria s growing insurance sector. ...Over time, these macro trends should attract increasingly more foreign investors seeking to establish a presence in Nigeria s growing insurance sector. Increased consolidation through acquisitions by foreign firms, especially within non-life insurance, is not out of the question as a large number of smaller domestic firms continue to struggle to raise capital in accordance with the NAICOM s capital requirements.
...Gross life insurance premiums have traditionally been undermined by the extremely low penetration of life insurance coverage in Nigeria. At -.- of GDP, or USD---mn in ----, the gross value of life insurance is rather small given the country s large population of ---mn people. ...In spite of this, along with the Nigerians limited awareness of life products, overall life premiums have been growing at a fast rate over the past few years - and they are expected to continue growth at significant rates over the forecast period. By ----, written life premiums should have reached NGN---.-bn from NGN---.--bn in ----.One of the key factors underlying this growth is the increasing popularity of life insurance products among Nigeria s professional classes, as increasingly more organisations are purchasing group and company-wide coverage for employees. These trends should be bolstered further by the expansion of Nigeria s middle class and, more specifically, growth in household incomes over the next few years. ...These trends should be bolstered further by the expansion of Nigeria s middle class and, more specifically, growth in household incomes over the next few years. In particular, there will be significant growth in the
...Only a small portion of Nigeria s population purchases life insurance, and life premiums currently account for less than a third of overall insurance spending in the country. Low incomes and a lack of understanding of the benefits of life insurance remain the most important obstacles that life insurers will be faced with over the coming years. ...
