Top international insurance firms, among them, Liberty
Group of South Africa and Prudential Life Company of UK are at advanced
stages in their push to enter the Nigerian insurance market, BusinessDay
investigations show.
The firms which have expressed the desire to position in
Nigeria which is expected to lead the continent’s underwriting market in
the next two years, ahead South Africa and Egypt, are already meeting
regulatory authorities.
BusinessDay investigations show that 12 other foreign
firms are currently in talks with the regulator, the National Insurance
Commission (NAICOM) in the quest for a stake in the country’s growing
market.
NAICOM is however said to favour investors in search of acquisitions, rather than those looking for new licenses.
The development is expected to make the market which
currently ranks second in the continent, behind South Africa, to take
the lead.
Nigeria’s insurance industry, with 60 underwriters, raked
in over N300 billion premium in 2013 on the strength of growing
confidence and adherence to strict corporate governance, which now
endears it to foreign direct investors.
“In the last six months, we have had more than 12
enquiries from foreign companies that want to operate here and we have
told them that we are not giving out new licenses but we prefer the
acquisition of an existing company” said Fola Daniel, the insurance
commissioner.
