The growth of microinsurance in Nigeria has been slow in the 10 years since an initiative was launched in September 2014 to promote microinsurance as part of reforms to make insurance inclusive.
The slow pace of development can be seen from the number of microinsurance institutions that are operating in the country, according to the news site This Day. So far, the National Insurance Commission (NAICOM) has licensed 12 microinsurance companies.
Information posted on NAICOM’s website shows that the microinsurers are Ally Micr-insurance; Cassava Microinsurance; CHI Microinsurance; Creditstar Microinsurance; DOT (Atom) Microinsurance; Goxi Microinsurance; LifeGuard Microinsurance; Nassure Microinsurance; New Dawn Microinsurance; Prudent Choice Microinsurance; Sagamu Microinsurance; and Yes Microinsurance.
NAICOM set out the Guidelines for Microinsurance in Nigeria which took effect on 1 January 2018 to strengthen collaboration between insurers and micro-finance institutions, helping traders, artisans, and other low-income earners to obtain loans underwritten by participating insurers. The guidelines aim too to provide minimum standards for the conduct of microinsurance in the country. Insurers responded to the move, forming alliances with mobile telephone operators to distribute insurance products to Nigerians.
In 2020, NAICOM permitted conventional insurers to set up microinsurance windows to transact microinsurance business.
Industry players say that the cost of transport, inflation, and the depreciating naira are factors impeding the marketing of microinsurance products.