Insurance, a concept dating back to the 13th century in Italy, is essentially a contract. In this contract, a person (called the Insurer) undertakes, in consideration of money (called the premium) paid to him by another (called the Insured), to indemnify the latter against the risk of loss arising from the occurrence of some specified contingency. Essentially, insurance involves shifting risk from the Insured to the Insurer.
In Nigeria, the roots of insurance reach back to the 20th century when the nation’s economy heavily relied on agriculture. There was a need for merchants to transport their cash crops to Europe and also reduce the risk of such transportation.
The Insurance industry, thus, holds an established position within the Nigerian Jurisdiction. The legal framework for insurance in Nigeria is governed by the Insurance Act of 2003, which plays a pivotal role in regulating insurance contracts and the industry itself.
The Nigerian Insurance Industry is a vital segment of the country’s financial services sector. However, it faces the influence of both emerging trends and persistent challenges.
This analysis delves into these dynamics, examining the forces molding the industry and its changing landscape. Moreover, it offers forward-looking strategies to enhance the growth and sustainability of insurance in Nigeria, along with practical solutions to drive the sector forward.
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About the Author
Emmanuel Uzodinma is an undergraduate law student at the University of Calabar. He has served in various capacities, including Campus Director of Legal Ideas Forum (LIFIN) UNICAL Chapter. Emmanuel has keen interest and passion in legal advocacy, research.