Nigeria needs to reduce the number of insurance companies operating in the country. 15 to 20 well-capitalized, skilled insurance companies will transform the industry. Expounding on his long-held view on market saturation, to see is consolidation, having fewer insurance companies that have the requisite skills, the analytics, the technology and the products that people want. That is what will move from the current less than 1% penetration to at least double of that size at first, then can get to 5%, 10% and more. At present, there are more than 50 insurance companies in Nigeria.
The biggest threat at the moment is that global players with big capital and all that it takes to drive growth are here and taking a position. The only reason people go outside to place their risks is that we have exhausted what have domestically. There is the local content law that should take advantage of, but because the capacity is not there, go outside and cannot over-expose our balance sheet to a single risk. Nigerian premium within Nigeria and African premium within Africa. These premiums to build hospitals, build roads, and build other infrastructures and technology within societies. NAICOM suspended the insurance industry recapitalization exercise for the second time in three years following a court order last December directing the regulatory body to do so.