Low capacity forces multinationals, high networth individuals to double-insure

Multinationals and high networth individuals are now engaging in double insurance by insuring same asset locally as well as offshore due to inadequate capacity of Nigerian insurance industry.

Vanguard findings show that these set of people and corporates are compelled by the local content policy to insure locally, otherwise, they would totally ignore the local insurance market.

Commissioner for Insurance, Alhaji Mohammed Kari, who disclosed this to Vanguard, noted that they pay for double cover because they don’t thrust local operators’ capacity. Kari stated: “A lot of the big clients in Nigeria still do double insurance.

First they insure to meet the requirement of the local content. However, they still insure abroad independent of their local insurers. So, they prefer to pay insurance twice because they don’t trust local operators’ capacity.”

Vanguard, November 13, 2018

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