Three Islamic insurance companies set up in Nigeria

Oct 25, 2016

They will become the country's first fully-fledged Takaful companies.

Three Islamic insurance companies will open in Nigeria in the next couple of months, newspaper Leadership has learned.

The new entities, which will be the country's first fully-fledged Takaful insurance
companies, have received an approval from the National Insurance Commission (NAICOM).

According to Leadership, these insurance firms are mostly owned by foreign investors, mainly from the Middle East and Asia.

In a recent report, rating agency AM Best Company, stated that
Nigeria offers "huge opportunities" for insurers and reinsurers, particularly in the field of Islamic Insurance.

Entitled "Africa's Insurance Markets: Gearing Up for Sustained Growth", the report finds that the attraction of the African insurance market comes from countries with large growing populations and developing economies, where the general market is relatively untapped, such as Nigeria.

The insurance penetration, although increasing, remains low at around 0.6 per cent. Given that half of the population is Muslim, the potential for Takaful growth is important.ADNFCR-2976-ID-801827234-ADNFCR