What Is the History and Development of Insurance in Nigeria?
The insurance business in Nigeria began with the report of the J.C. Obande Commission of 1961, which was followed by other acts and decrees, such as the Insurance Companies Act of 1961, the Insurance Decree of 1976, the Insurance Special Supervisory Fund decree 1989 and other enactments. The National Insurance Commission is responsible for a lot of positive changes for Nigeria regarding insurance.
The J.C. Obande Commission report of 1961 resulted in the establishment of a Nigerian Department of Insurance in the Federal Ministry of Trade, which was later transferred to the Ministry of Finance. The Insurance Companies Act of 1961 classified insurance businesses into various classes for registration and provided forms for record keeping. The Insurance Decree of 1976 provided for the authorization of insurers, modes of operation, organization and transfers, administrative and enforcement guidelines, and penalties.
The National Insurance Commission was established in 1997 with the responsibility of regulating and supervising insurance in Nigeria. The commission has since been the main insurance regulator in Nigeria. The Insurance Special Supervisory Fund decree of 1989 strengthened the Insurance Supervisory Board and included a provision mandating that all insurance companies contribute 1 percent of their gross earnings to the fund. As a result of the insurance decrees and developments since 1961, the insurance industry in Nigeria has been growing steadily. Incomes have increased at a rate of approximately 18 percent per year.