Since the dawn of 21st century, Nigerian insurance industry, have been in doldrums the number of insurance companies operating was reduced from 104 under-capitalized underwriting firms to only 51 successfully recapitalized firm by September, 2007. The reduction of the number of operating firms was the outcome of government pronouncement that all insurance firms should be recapitalized. The recapitalization exercise increased the statutorily required capital for life insurance business from N150million to N2billion, general insurance business from N200million to N3billion and reinsurance from N350million to N10billion.Obaremi (2007) stated that potentially, Nigeria has the biggest insurance market in Africa, but weaknesses in the industry meant that most of the large insurance business was underwritten by foreign companies. In addition, now the domestic industry is poised not only to penetrate deeper in the domestic market, but to expand to other regions of the continent.