According to the Managing Director of Insurance Brokers of Nigeria, Mr Prosper Okpue, the insurance penetration rate of Nigeria continues to worsen. His statement comes over a year after the World Bank issued a report citing that the Nigerian insurance industry had remained stagnant for 35 years and its world market share stood at a mere 0.01 percent (compared with South Africa’s 0.83%). The former president of the Nigerian Council of Registered Insurance Brokers attributed this to the fact that, “Only companies or government ministries will pay premium for their group life insurance. What happens to the informal sector where the bulk of the population can be found carrying out legitimate economic activities?” In response to the issue, Mr Okpue proposed a microinsurance scheme that would “help the people integrate insurance into their lives.” Further details have not been released.
By: Stefanie Rubin, Research Assistant
About Nigerian Council of Registered Insurance Brokers (NCRIB):
The Nigerian Council of Registered Insurance Brokers was founded in 1962 as the Nigerian Corporation of Insurance Brokers. In 2003, it became officially recognized as a central organization for the regulation of insurance brokers in Nigeria. Under law, all registered insurance brokers in Nigeria are required to be registered by NCRIB before they can be licensed to operate. As of 2009, there are over 350 registered members of the Council.
Additional Resources:
Source Article: Vanguard: “Insurance Penetration Worsens, Experts Say,” http://www.vanguardngr.com/2009/12/09/insurance-penetration-worsens-experts-say/
Federal Ministry of Finance, Nigeria: “Spurring Economic Growth – The Role of Insurance Industry in the Nigerian Economy,” http://www.fmf.gov.ng/FMF_News.aspx?id=111
Nigerian Council of Registered Insurance Brokers: http://www.ncrib.net/index.htm
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