Nigeria Insurance Report Q1 2016
BMI View: We have a positive outlook for both Nigeria's life and non-life insurance segments over thecoming years. Key growth drivers reside in the country's improving economic conditions, which means thatwith rising incomes and a growing middle class, increasingly more Nigerians will be able to afford longtermand short-term insurance contracts as their rates of auto and home ownership increase. We note,however, that currency movements due to falling oil prices and national security issues may weigh on thegrowth potential of life and non-life premiums.
Key Updates And Forecasts
With a share of nearly 70% in total written non-life premiums in 2016, non-life insurance is by far themore important segment in Nigeria's insurance sector. Notably, with insurance penetration rates ofaround 0.2%, non-life insurance is only slightly more developed than life insurance. We expect, however,that life insurance will continue to outpace its non-life counterpart over the next five years, which meansthat increasingly more Nigerians are recognising the benefits of life insurance. Overall, both majorsegments will show rapid growth rates over the foreseeable future, which to a large extent are related toNigeria's economic development.
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