1. INTRODUCTION
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.
1. INTRODUCTIONSince the dawn of 21st century, Nigerian insurance industry, have been in doldrums the numberof insurance companies operating was reduced from 104 under-capitalized underwriting firms toonly 51 successfully recapitalized firm by September, 2007. The reduction of the number ofoperating firms was the outcome of government pronouncement that all insurance firms should berecapitalized. The recapitalization exercise increased the statutorily required capital for lifeinsurance business from N150million to N2billion, general insurance business from N200million toN3billion 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 mostof the large insurance business was underwritten by foreign companies. In addition, now thedomestic industry is poised not only to penetrate deeper in the domestic market, but to expand toother regions of the continent.
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