OCTOBER 05, 2020 07:30 AM (EDT)
Best’s Market Segment Report: Nigeria’s Insurance Market Offers Significant Potential Despite Headwinds
FOR IMMEDIATE RELEASE
LONDON - OCTOBER 05, 2020 07:30 AM (EDT)
In a new Best’s Market Segment Report, “Nigeria’s Insurance Market Offers Significant Potential Despite Headwinds”, AM Best notes that, due to the COVID-19-driven economic slowdown, the insurance market regulator (National Insurance Commission [NAICOM]) has agreed to further delay its revised plans to strengthen market capitalisation and limit the volume of premium flowing out of the country.
NAICOM has now opted for a staggered approach that requires partial recapitalisation by December 2020, with market participants obliged to meet the full requirements by September 2021. AM Best believes that a material proportion of (re)insurers will find it challenging to raise sufficient additional capital to meet the new standards. It estimates that only one fifth of Nigerian (re)insurers at year-end 2018 had sufficient capital and surplus to cover the new requirements. In addition, more than 10 companies will have to double their reported 2018 year-end capital and surplus figures to meet the requirements.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=301771 .
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.