Undercapitalization of the Nigerian insurance market
The insurance premiums of Dangote Refinery whose insured value is estimated at 6.8 billion USD, are likely to be underwritten by foreign companies at 72%. Other high-value energy risks could suffer the same fate with a massive flight of insurance premiums abroad. Such cases raise, once again, the issue of the local insurance market’s capacity to cover Nigeria’s risks.
The National Insurance Commission (NAICOM) has once more, urged local insurers to recapitalize their companies in order to meet the country’s needs.