We all believe that life is good, yes life is good but sometimes it takes its face against each and every one of us isn’t it?

What will you do in these times? Learning how to deal with it is the trick.

One of the ways to deal with life is getting help through Insurance companies, as this can also help you cope with life anxiety. But what is insurance?

What Is Insurance In Nigeria

If you’re asked what is Insurance in Nigeria, “Insurance is a method of reducing your potential financial loss or hardship”. Insurance refers to a mechanism that future proofs an individual or an organization from having to bear the full burden of unforeseen negative events that requires finances to correct. Insurance helps to reduce the cost of fixing damages caused by negative unforeseen events to a reasonable extent. Unforeseen events like theft, fire outbreak, motor vehicle accident, health issues e.t.c are taking care of by insurances companies. It can even provide families with a financial payment upon someone’s death.

All you need to do is just to pay a fee called a Premium, and in exchange, the insurance company agrees to pay you a certain amount of money if the event you are insuring against is covered and happens during the term of the policy.

We have various insurance companies in Nigeria today but it will be advisable that you know more about the top 10 insurance companies in Nigeria before buying insurance.

Let’s consider some basic insurance terms that you may encounter as you look into my list of top 10 insurance companies in Nigeria, soon to be listed below.

Agent: Someone who represents one insurance company and sells its insurance products.

Broker: Person or company who sells the insurance products of several different insurance companies

Coverage: Amount of protection you have purchased.

Claim: Official notice you provide to your insurer requesting to be paid for a loss or event covered by your insurance policy.

Insured: Person(s) protected by the insurance policy.

Insurer: Insurance Company that issues the insurance policy

Policy: A policy is a legal contract between the insurer(insurance company) and the insured(individual or organization), known as the policyholder, which determines the claims which the insurer is legally required to pay, in exchange for an initial payment, known as the premium, the insurer promises to pay for unforeseen negative events.

Insurance companies in Nigeria consist of different types of insurance which include:

– Life insurance
– Health insurance
– Business insurance
– Property and casualty (General) insurance
– Auto insurance.

Talk about Pension, Gratuity or gratitude, these insurance coys have plans for that and all are licensed and certified by the National Insurance Commission.

Factors To Consider When Selecting An Insurance Company

In choosing an insurance company, a lot of factors should come to play in mind. A lot of people have gotten burnt in the past as a result of dealing with the wrong insurance company. In order to avoid making mistakes of this nature, it is better to take your time and do some proper investigation before settling for an insurance company.


The Factors to consider are as follows:

1. LEGAL ACCREDITATION: The company’s government accreditation is an important factor to consider when choosing an insurance company. Companies that are legally accredited would stick to rules, regulations, policies, and guidelines better than companies that are not.

2. THE COMPANY’S REPUTATION: You should take time to find out about the company before committing to them. The internet is one very easy way to find out about any company. Just look out for reviews about the company on the internet, you will be able to find useful information about the company’s track record. One basic thing to watch out for is the negative review and the nature of the problem experienced by the client in a deal with an insurance company. If the company has problems with non-compensation of its policyholders, that’s a red flag that you shouldn’t do business with that company.

3. FINANCIAL STRENGTH: This factor is very important in considering the Insurance company to be insured by. In other to avoid an ugly situation whereby you as an individual or Business owner is disappointed by your insurer due to their financial weakness, proper and detailed investigation should be carried out on the financial strength and stability of the insurance company. A good way to do this is to get a copy of their current financial statement and look out for their profitability and growth rate over the years. You would also find a lot of resources online and online rating services that would give you a clear insight into the financial strength of an insurance company.

4. COVERAGE: A good knowledge of what a particular insurance company offers coverage on is also an important factor to be taken into consideration when choosing an insurance company. Most insurance companies offer general insurance coverage on the property, auto, health, and general liability insurance policies, but the type of insurance your business needs depends on the kind of business you do. Finding out if the insurance company offers coverage on things that are peculiar to your business needs is of maximum importance.

5. PRICE FACTOR: Price should be a consideration when choosing an insurance company. Remember the old saying, “You get what you pay for.” There are many reasons why pricing differs between insurance carriers. A lower price may mean you have less coverage. Less coverage means more money out of your pocket when a loss occurs. A lower price may also mean that the insurance carrier has entered a new market for them so it may not have the experience another insurer would. Making sure that the insurance company you choose offers a pricing that complements your financial plan is a very important factor to be considered.

The Top 10 Insurance Companies in Nigeria 2019

1. AIICO Insurance Plc

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