Experts are predicting that, regardless of the challenges in the country, the industry will be growing faster.
A recent analysis has been published by KPMG and has predicted that the insurance market in Nigeria will see its growth picking up speed despite some of the challenges it has been facing over the last while.
The forecast was made based on its expanding use of ICT and telecom facilities for sales, as well as the population density.
The analysis results were published in “The African Insurance Market at a Glance” report issued by KPMG. Within it, the organization underscored its prediction that the sophistication increases in the markets in Sub-Sahara Africa – including the Nigerian marketplace – will be having a notable impact on their growth rate. The report detailed its forecast for positive outcomes from the collaborations between insurance companies and regulators. It expressed that improvements were being seen in active market regulations such as those sought by the National Insurance Commission (NAICOM).
This collaboration within the insurance market, says the report, is laying a strong foundation for the future.
The report provided the example of the recent interaction between NAICOM and the National Association of Insurance Commissioners (NAIC) in the U.S., in which they endorsed a Memorandum of Understanding (MoU) between them. The goal of this agreement was to encourage and keep up safe, efficient, stable and fair insurance marketplaces within both the United States and Nigeria.
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Both of those regulatory organizations stated that they felt that cooperating in this way will give them the ability to more effectively provide regulation within the insurance industry and to solidify international best practices. Within the MoU, these regulatory authorities will be occasionally offering each other assistance in the form of educational seminars, providing training materials and manuals, training, participation in specific educational internships, and other issues that will be mutually beneficial.
Insurers are also seeing opportunity in the Nigerian insurance market, as Trust Re has recently invested into a joint stock company that would allow it to add its presence within that marketplace where the disposable income and middle class are on the rise.