In September 2005, the statutory capital of composite underwriters was increased to N5.0b ($33.33m) resulting in the number of insurance companies reducing from 103 to 49, by 2007. Some composite underwriters de-coupled their licenses between 2007 and 2009 thus bring the number of underwriting outfits to 59 as at 31st August 2010.

The industry Gross Premium Income (GPI) for 2009 was N200.0b while the industry capital base rose to N500.0b by June 2010. The GPI of most underwriters is on average 50% of the statutory capital indicating serious under-trading.

There are over 60 different products in the market including Six (6) compulsory products. The Market is not concentrated. The Largest underwriter generates 14%, Top five 34%, and Top ten 49% of the industry GPI (2008).

In 2007, the Committee of the Financial Services Regulators came up with a Financial Sector Reform Agenda tagged ‘’Financial System Strategy 2020’’ (FSS2020). A new Commissioner for Insurance – Mr. Fola Daniel- was appointed late 2007. He promptly appointed subject matter experts who calibrated the strategic initiatives of the FSS 2020 Insurance Sector Report into Thematic Outputs, Action Steps, Deliverables, Time-Buckets and Market Impacts.

Implementation stakeholders were appointed on basis of short, medium and long term deliverables with specific time lines indicated. Work has started on the Medium-term deliverables and the project is tagged “Market Development and Restructuring Initiatives (MDRI).” The buy-in of 48 stakeholders within and outside the industry was secured between 2008/2009. Strategies were crafted for the thematic outputs and implementation of the Initiatives in January 2010. It is to end by December 2012.


The MDRI Components
The following are the components of the NAICOM’s MDRI project:
1. Enforcement of the Compulsory Insurance Products
2. Sanitization, modernization and standardization of the Insurance Agency System
3. Wiping out of the Fake Insurance Institutions
4. Adoption of Risk-based Supervision and Solvency-Focused Regulation
5. Bridging the skill-gaps in the young Insurance Practitioners
6. Building Consumer Trust and Confidence in Insurance


The Deliverables
The following are the results which NAICOM hopes to achieve between 2010 and 2012 from the MDRI project:
- Create about 50,000 new jobs in the Insurance Industry.
- Provide Fire Service Maintenance grant for each state in Nigeria.
- Increase Industry GPI from N200.0b (2009) to N1.0tr by 2012.
- Increase Consumer Trust and Confidence in Insurance mechanism.
- Lower the Insurance Gap from the current 94.0% to about 70%.
- Increase Insurance Contribution to the GDP to over 3.0%
- Increase Premium per capital from the current N825.00 to N7,500.00 by 2012.
- Promote Insurance as a tool of stimulating growth of other sectors in the economy and to raise funds for projects of national development.
- Consolidate the market through Risk-based supervision and Solvency-Focused Regulation.


The Reform Platform for MDRI – 2013 – 2020
Nigeria has decided to become the leading insurance market in Africa come 2020 and is ready to make major reform efforts in the areas of;
-Creating consumer trust in the sector (safety)
-Creating an efficient, profitable market structure (efficiency)
-Ensuring that the sector is financially sound (capacity)


The MDRI Vision
To become the Insurance market of 1st choice in Africa noted for high level capacity, transparency, efficiency and safety, and to attain the 15th position in world Insurance premium generation by the year 2020.


The MDRI Mission
To develop an Insurance Sector that drives and protects the economy through effective and efficient market structure.

The National Insurance Commission hopes to leverage on the six (6) Compulsory Insurance Products in Nigeria to reduce the huge Insurance Gap.


The Compulsory Insurance Products in Nigeria
1. Employers Liability – Workmen’s Compensation Act 1987.
2. Healthcare Professional Indemnity -NHIS, Act 1999.
3. Builders Liability – Insurance Act , 2003
4. Occupiers Liability – Insurance Act 2003
5. Motor 3rd Party Liability – Insurance. Act 2003
6. Employers Liability – (Group Life) – Pension Reform Act 2004