Non-admitted Insurance: Prohibited unless individually sanctioned by the local regulator.
Regulator: The National Insurance Commission (NAICOM) is the regulator for the Nigerian insurance industry.
Overview: Historically, weaknesses in the local insurance market meant most large insurance business was written by foreign companies. Today, the rapidly developing oil and gas sector demands a strong insurance market with innovative solutions so that companies can deal with the risks they face. There are just under 100 local insurers in Nigeria.
The Nigerian government is prone to protectionism, however. In 1976, it took a 60% interest in foreign-owned insurance companies. The regulator has also threatened to revoke the licences of insurance and reinsurance companies who patronise any insurance broker not registered in Nigeria. It said recently that it is poised to sanction any company that fails to comply with the provisions of the 2003 Insurance Act.
Overall risk rating: very high