Reasons for the Dominance of Foreign Reinsurers in Nigeria
Foreign reinsurers in Nigeria, majorly Europeans, about to about sixty percent of the reinsurance market and this massive dominance has been ascribed to the inability of oval insurers to respond to the demands of the system caused by low underwriting capacity and shareholders’ funds.
According to the report, of the remaining thirty five percent, African Reinsurance Corporation (Africa Re) a continental reinsurer controls about twenty percent while the rest of the local insurers have to grapple with the remaining fifteen percent. However, the continental reindeer claims to have assumed a leadership role of moderating the situation stating that “standing with Nigerian insurers, the corporation has developed diverse partnerships to support the market development, for example on the mitigation of forex risk, unlike the foreign insurers, Africa Re accepts payment of reinsurance premiums in Nigerian Baj accounts and in the national currency (Naira).
It also revealed that some amount weighing over 90 million US dollars have been invested by the corporation into various Nigerian companies as a way of supporting her economy and has also indirectly created over 570 jobs. The corporation also stress that is is working with the National Insurance Commission (NAICOM) to enhance public awareness of insurance products so as to boost insurance penetration in the country. This, it claimed, it is also involved on besides being a part of the development of the insurance industry through in-house and market insurance trainings.