Brief History of Insurance in Nigeria

In the history of Insurance in Nigeria, there were some events that have really brought a lot of development to the Nigerian market and this history is one that should not go down with time. They signify the pioneering steps responsible for the industry’s growth and are engraved in the stone of our development.

Brief History of Insurance in Nigeria

It started with the really researched report made by The J.C Obande Commission, which brought about the establishment of an insurance department named Nigerian Department of Insurance. This department was at a later time moved to the Ministry of Finance. Thus, the 1961 Insurance Companies Act made an arrangement that called for the grouping of the various and the numerous Insurance businesses into different classes for the sake of registrations and to make adequate provision of the forms that would be used to keep records.

Brief History of Insurance in Nigeria

More so, they tightened their hold on insurance by giving an Insurance Decree, this happened in 1976, and this Insurance Decree gave provision for insurers to be authorized, had the various modes of operations, and that of organization and various transfer etc.

So in 1997, the National Insurance Commission was formed. The purpose of its establishment was to make it solely responsible for making supervisions and regulations of insurance in Nigeria. Hence, the commission has been on its toes to ensure regulation in Nigerian Insurance.

In 1989, a fund was set up to support the commission and it was set up with the name ‘ Insurance Special Supervisory Fund ‘, and it was established with many mandates.

The following mandates were given the top priority to ensure it functions effectively ;

  • They were to make a compulsory call that every insurance company should pitch-in a percent of their gross income towards enlarging this fund.
  • They were established to strengthen the Insurance Supervisory Board.

From that time onward, there had been a lot of improvements in the Nigerian insurance company. The movement and this board have made people have a little faith in Insurance. This continuous improvement is instrumental in the rate at which people now decide to patronize such institutions and commit their properties and other valuables to insurance.

Read Also: History Of Accounting In Nigeria

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