Insurance in Nigeria, historically, started with the British colonial traders in 1879, seeking to protect their maritime trade.
Initially, insurance underwriting was done in London, with local agents in Lagos issuing cover notes.
According to Statista, the African insurance industry is still developing in many countries across the continent.
The insurance industry in Africa represents less than three percent of insured catastrophe losses worldwide, although it’s home to almost 18 percent of the global population.
For instance, insurance penetration in Nigeria is pegged at 0.23%, Ethiopia 0.55%, Egypt 0.72 and the South Africa with 16.99% reputed to be the highest.
Among other invaluable opportunities Microinsurance offer is that it products cover low-income households or individuals who have little savings.
It is tailored specifically for lower valued assets and compensation for illness, injury, or death.
Typically, there are four main methods for delivering microinsurance:
- Provider-driven model,
- Full-service model,
- Community-based model, and
- Partner-agent model.
The under-listed are the top microinsurance companies in Nigeria aimed at addressing different challenges, with tailored solutions.
1. Goxi MicroInsurance
GOXI is a composite microinsurance company licensed by NAICOM to offer life and non-life microinsurance services. They are the first standalone licensed microinsurance in Nigeria, offering affordable, innovative and customer centric insurance solutions to low-income individuals, micro and small business enterprises.
Goxi, develops product from continue research and close working relationship with the low-income segment are appropriate and relevant at ensuring that real values are delivered to its customers.
2. LifeGuard Microinsurance
Lifeguard Microinsurance Ltd is an insurance company that underwrites cheap and affordable insurance products for the protection of the low income earners in rural and urban communities of Lagos State.
It provides cover against specific perils for regular premium payment proportionate to the likelihood and cost of risk involved thereby breaking the barriers of poverty and giving meaning to the life of the low income earners in the society.
Lifeguard focuses on driving and deepening insurance penetration and inclusion to the grassroots through the provision of covers for a myriad of risks that private sector such as, SMEs, associations, trade unions and the average Lagosian may face in their daily activities.
3. Prudent Choice Microinsurance
Prudent Choice Micro-insurance Limited, is a wholly indigenous company incorporated in March 26, 2019 and licensed in November 2021by the National Insurance Commission, to design develop, package, market and sell microinsurance products and services that are suitable, simple, convenient, affordable and accessible to low and medium-income individual, households and business enterprises.
Its activities are not just a scaled down version of regular Insurance operations, rather, the products and processes are completely tailored to meet the characteristics and preferences of low-income market.
Prudent Choice also focuses on the needs and circumstances of low-income populations that have been ignored and excluded from financial services and government welfare schemes.
4. Creditstar Microinsurance
Creditstar designed and developed a set of innovative products, to protect the low-income people and businesses against impacts of financial losses.
Creditstar offers life and non-Life products that guarantee insurance protection to individual, families and businesses, including those that create and encourage savings and investment culture.
This cover is designed to pay off borrowers/customers’ outstanding loans, as a result of death or permanent disablement of the customer.
5. Cassava Microinsurance
Casava plays on cassava production segment of the Nigerian economy.
Nigeria happens to be the world’s largest producers of Cassava and it’s the third most important food crop in the tropics, comprising 30-50 percent of all calories consumed in sub-Saharan Africa.
The company has the opportunity to capture the essence of Cassava – bringing nourishment and prosperity to the people of Africa and emerging communities.
6. CHi MicroInsurance
CHI MicroInsurance Limited is a wholly owned subsidiary of Consolidated Hallmark Insurance Plc.
It was established in 2019 and is fully licensed by NAICOM to provide affordable insurance products especially to low income earners.
It offers best in class range of microinsurance products designed specifically to meet your unique needs.
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In a world of rising risks, microinsurance is a vital tool to build financial resilience as it helps individuals, small businesses and farmers manage the financial impacts of unexpected events, such as an illness, death, loss of income or natural hazards.
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