July 3, 2020

Insurance Companies in Nigeria – Importance of Insurance in Nigeria

“Insurance Companies in Nigeria” What is Insurance? Insurance is an important service that is open up to people’s families and colleagues and creates confidence and peace for future purposes. The property, life, health, goods enterprises, etc. has been the main form of insurance.  Insurance has been in existence for a very long time before Nigeria gained her independence which is bringing and imparting effective changes.

Insurance Companies in Nigeria

Insurance Companies in Nigeria

One of the many reasons people insure their money is to escape the burden of been unforeseen negative events that may occur and take up a huge chunk of finance. Insurance serves as a future guard for individuals and organizations. It’s also a guide against panic and controls inevitable hazards from running businesses, relationships, education, and families.

However, there are many benefits stand true, there are also still factors to consider before choosing an insurance company in Nigeria. Despite the branding to avoid the problem, you must carefully investigate the insurance company that you want to catch your attention and make sure that you get the answer before the set.

Moreover, make sure you take your time to consider the advantages of the insurance policy that will be offered to you by the insurer.

Contents

  • What is an Insurance policy?
  • Factors you need to consider before choosing an Insurance Company in Nigeria.
  • List Insurance Companies in Nigeria
  • Importance of Insurance in Nigeria

What is an Insurance policy?

Insurance policy is a contract or agreement between the insured (individual or Organization) and the insurer (insurance company).

NOTE: This contains the agreement and contract of both parties that have made the claims the insurer is required to pay in the exchange of the payment is called premium and is made by the insurer.

Factors you need to consider before choosing an Insurance Company in Nigeria

When choosing an insurance company, it is about trusting an insurer with the money you earned. In every country where there is no social security blanket the insurance company, you must choose plays an important role in securing your own and your family’s financial future. So it will be in your best interest to choose wisely and as well consider some factors. Below are some factors to consider when choosing an insurance company in Nigeria:

  • The coverage
  • The price tag
  •  The financial strength
  • The Legal accreditation
  • The brand of the company
  • The company history
  • The available discounts
  • The service quality
  • The complaints and reviews

Insurance Companies in Nigeria

There are thousands of insurance companies in Nigeria which makes it difficult at times is rates of best. However, before you consider purchasing insurance for any insurance company in Nigeria, you should make sure the insurance company is well-known know to the public, they also have a good record of integrity and also they have people who have testified that they are good to insure with. Below are some Insurance companies in Nigeria to consider when purchasing insurance:

  • Niger Insurance Plc.,
  • Nigeria Deposit Insurance Corporation (NDIC).
  • Zenith Assurance Company.
  • Unitrust Insurance Company Limited.
  • Sovereign Trust Insurance.
  • Prestige Insurance Brokers Limited.
  • Oasis Insurance Plc.
  • Mutual Benefits Assurance Plc.
  • Law Union and Rock Insurance Plc.
  • International Energy Insurance Plc.
  • Goldlink Insurance Co. Limited.
  • Equity Life Insurance Co. Limited.
  • Cornerstone Insurance Plc.
  • Custodian Insurance Plc.
  • A&G Insurance.
  • Guaranty Trust Assurance Plc.
  • Crusader Insurance Plc.
  • Continental Reinsurance
  • Acen insurance Company
  • Linkage Assurance Plc.
  • Industrial and General Insurance Plc. (IGI)
  • Leadway Assurance Company Limited.
  • NEM Insurance Plc.
  • Oceanic Insurance Limited.
  • Royal Exchange Assurance (Nigeria) Plc.
  • TransGlobal Insurance Brokers.
  • Adic Insurance.
  • Aiico Insurance Plc.
  • Consolidated Hallmark Insurance.
  • LASACO Assurance Plc.
  • NAICOM.
  • Standard Trust Assurance Plc. (STACO).
  • UNIC Insurance.
  • FBN Insurance.

Importance of Insurance in Nigeria

The importance of insurance in Nigeria and the reason why it needs it. Nigeria is one of a few countries in the world that is reluctant in embracing insurance. Of which they see insurance as an unnecessary expense, which we can do well without.

The one thing you need to know is that insurance is not a tangible service that is an intangible service. It means that that is not seen or physical and because is intangible service it is regarded by some as one of the most difficult things sells. Insurance can only be visible when there is a loss of the event, in that case, the claim is initiated by the policyholder and the terms mo0f the insurance contract are upheld by the insurer. Below are under listed the importance’s of Insurance in Nigeria:

Insurance Understands Your Needs

Insurance help basically in meeting all your needs. For instance insurance help to protect your car from unexpected losses.

Protection Against Unexpected Losses

With insurance, you are protected against unexpected losses and help to assure that in the event of the damage, death or injury your claim will be settled in line with the agreement you signed with the insurer and you as well. It also helps in the reduction of your financial risk in an event of unexpected loss.

Saves Money

Insurance helps you in saving money. For example, you decided to insure your car for #2million, the standard premium rate is 10%, therefore, your premium will be 200, 000. If due to an unexpected loss or circumstances the car is stolen or involved in an accident, your insurer is obliged to pay you the sum of 2million. Less the applicable policy deducted of 10%. Hence the likely final statement will be #1.8million for you the premium of 200, 000 you have saved 1.8million. So, how insurance helps you save money.

Transfer Mechanism

The insurance policy gives you guarantees that the unexpected loss that associated with every  risk is transferred  to the insured holder to the insurer

NOTE: you now know why the insurance company is very important in Nigeria, hence I urge everyone to go out and get one of the insurance companies as listed above as soon as possible and you won’t have cause to ever regret it.

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