Types Of Insurance Companies In Nigeria

There are different types of insurance companies around, and you will encounter different firms operating in different patterns when in need of an insurance policy. Hence, it is appropriate to know the type of insurance company one is dealing with before anything else.

In different places in the world, the different types of insurance companies there vary, depending on different factors. But the popular ones will be treated here. And they include:

Types Of Insurance Companies In Nigeria

Standard Lines

These ones have a license to operate and sell specific lines of insurance in a particular place, and they are actually subjected to laws and restrictions of the area were licensed to operate.

Excess Lines

Those in this category majorly insure specialty risks like high-risk auto insurance or high-risk individuals that won’t be eligible for coverage by the above category (as a result of its underwriting restrictions).

Direct Sellers

Insurance companies in this category sell directly and do not use insurance agents. They are known for selling directly to the insurance consumer. They can have physical offices in different places in Nigeria, and can also conduct their operation online. If you need to get an insurance policy, you have to deal directly with such companies, as they don’t use local agents.

Domestic Insurance Companies

These are insurance companies that operate and are licensed in Nigeria but can be licensed to operate in other territories too.

Alien Insurance Companies

These ones are incorporated on laws of another country, but operating in Nigeria.

Mutual Companies

These kinds of insurance companies are actually unique, as they are owned by the policyholders. These owners are regarded as the shareholders and can get dividend payment distributions when necessary. Additionally, they may not be penalized by an increase in premium due to losses. 

So, basically, when you are getting insurance, you may choose to buy an insurance policy from an agent that is representing a particular company, or from an independent agent that represents many firms (you will have more options here). You can also choose to purchase an insurance policy from a direct seller.

Now, let’s talk about some of the popular types of insurance policies available out there.

Types of Insurance Policies 

Life Insurance

This refers to a policy that ensures financial freedom for your family members after death, as a policyholder. This is particularly necessary for men who are usually the sole provider in the home. It is then necessary to put in place such systems as this so that when they eventually leave the world, their family won’t be financially devastated. If you are such a person in your home, you should not be myopic but should be concerned about the future of your family and loved ones, particularly after you are gone 

Motor Insurance

If you have a car or a motorcycle, you can get them insured, so, if you encounter something like an accident, you will still be offered financial assistance by the insurance company as a policyholder. It is also necessary to add that this type of insurance can come in different dimensions. You should approach your insurance company to get relevant information. After spending a lot of money to get a vehicle, it is wise to go ahead to get it insured.

Health Insurance

This type of insurance is a type of general insurance that offers financial assistance to folks if they are admitted to hospitals for treatment due to their health (as long as they are policyholders). In some places, there are plans in this segment that also take care of the cost of treatment undertaken at home. Considering the rising cost of hospital treatment, it is helpful to take advantage of such structures as this. Health is golden no doubt, and it is unpleasant not to be able to get appropriate health care due to finances.

Travel Insurance

There are insurance companies in Nigeria that also offer travel insurance. With this, the financial safety of a traveller during a journey is taken care of as a policyholder. Of course, this is usually a short-term cover, as the duration of the trip won’t take forever. When you purchase this policy, depending on the company and what was agreed on, policyholders may receive financial aid on such occasions as during loss of baggage, trip cancellation, etc. It should also be added that there are usually different types of travel insurance plans available around. You should approach your insurance company and get relevant information in this regard too. 

Property Insurance

Property insurance; you have a building (or any eligible immovable structure), you can actually insure it. This is why there are property insurance plans available. It should be noted that it doesn’t matter if it is a commercial space or a residential one. If you are a policyholder, if any damage should come upon such property, you can also get financial assistance from the insurance provider. One other thing about property insurance is that many times, the things inside the property are also safeguarded by the policy.

You should note that there are also other types of insurance not talked about here due to one reason or another. One of such reasons is because they are not yet vehemently pronounced in Nigeria as they are elsewhere. For instance, there is Mobile Insurance, which is popular in some places. In such climes, since it has been observed that there is a rising in prices of mobile phones,  it has become necessary to insure the device. For policyholders, if their phones should encounter accidental damage (or even theft), they can claim finally assistance.

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In conclusion, just as there are different types of insurance companies in Nigeria, there are also different types of insurance policies you can subscribe to, and there are different things you can actually get insured to. It appears more and more Nigerians are embracing insurance compared to what used to be in previous times.