About us

About Marsh Nigeria

Marsh Nigeria currently trading as Femi Johnson & Company Limited (Incorporated Insurance Brokers) Rc7415

Established: 1970
Branches in Ibadan, Lagos Abuja & Port Harcourt

Employing 39 People

 

Our Country

Nigeria has the largest population in Africa at over 170 million persons, and  has experienced an era of high growth in the past few years, fuelled by a thriving economy, increased business activities  and  asset  ownership,  a large emerging  middle  class,  and  increased  foreign investments.

Until recently the largest economy in Africa (now second largest),  Nigeria aspires to be an important player in international finance and commerce and this aspiration is reflected in nearly all the government’s strategic proposals, policy documents and development plans.

 Nigeria is rich in natural resources, particularly natural gas, petroleum and solid minerals. Its economy is primarily based on exports of oil and gas, which provide 80% of budgetary revenues and 40% of the GDP.

The key drivers in the non-oil sector, in terms of growth, are telecommunications, commerce, manufacturing, agriculture and financial services.

The  Agricultural sector which is the largest employer in economy has in recent times being the focus of the much governmental activity and strategic intervention expanded by 4.53 percent Q1 2016  and is projected to remain as the fastest growth sector of the economy for the foresee able future. The majority (over 70%) of the workforce employed in the agricultural sector are women.

The large population has been a major driver in attracting investments into Nigeria especially since the return to democracy in 1999. However, despite the population and increased economic activity, insurance penetration in Nigeria remains among the lowest globally.

Our Client Mix

Our clients include Personal Lines, SMEs, MDAs & Parastatals and large Commercial and Multi-National Corporate operators in every sector of the National economy in Nigeria.

Key Competencies

Our key competences include:

  • Personal Lines Insurance Broking
  • Small  & Medium Scaled Enterprises Insurances
  • Corporate & Commercial Insurances
  • Employee Health & Benefit Insurances
  • Energy & Power Insurances
  • Agriculture & Allied Industries
  • FinPro & Specialist Insurances
  • Reinsurance Broking
  • Risk Management & Alternative Risk Transfer Solutions
  • Claims Management

The Nigerian Insurance Market

Insurance activity in Nigeria is regulated by two Acts and supervised by the National Insurance Commission of Nigeria. (NAICOM)

The Insurance Act, No. 1 of 2003 governs the licensing and the operation of insurers, reinsurers, intermediaries, and other providers of related services while The National Insurance Commission Decree, No. 1 of 1997 established the National Insurance Commission (NAICOM) as the supervisory institution with the power of inspection, remedial and enforcement actions, and composition of fines.

NAICOM raised the minimum capital requirements for insurers in 2007 to ensure capital adequacy and encourage the consolidation of players in the industry.  This substantial increase in the minimum capital requirements in 2007 led to an industry-wide consolidation in the number of insurers from 104 to 60 in 2008.

Current Nigerian minimum capital requirements are as follows:

  • Non-life companies: ₦3 billion
  • Life companies: ₦2 billion
  • Composite companies: ₦5 billion
  • Reinsurance companies: ₦10 billion

Brokers are not required to have a minimum capital. Presently, the industry is served by 32 non-life insurers, 17 life insurers, 10 composite insurers and two reinsurers. There are 1,737 registered agents, 542 brokers and 48 loss adjusters.

Emerging Trends in the Nigerian Insurance Industry

Capacity

Considerable local market appetite and capacity for risks.  The regulator is actively encouraging local market appetite for specialist risks and acceptances including the continual development of local underwriting expertise for underwriting same.

Reinsurance

Reinsurance with foreign reinsurers requires NAICOM approval, subject to demonstrating that the insurer has exhausted local reinsurance capacity.  Foreign reinsurers must have a minimum financial strength rating of A- (Standard and Poor's) or A (A.M. Best).

There are two locally licensed reinsurers ContinentalRe & NigeriaRe, along with a representative office of a regional reinsurance company – WAICARe and AfricaRe, neither of which are subject to NAICOM supervision.


Mandatory Insurance Requirements

There are six compulsory insurance coverages under various legislations. They are:
  1. Group life insurance in line with the Pencom Act 2004
  2. Employers liability in line with the Workmen’s Compensation Act 1987
  3. Buildings under construction - Section 64 of the Insurance Act 2003
  4. Occupiers liability insurance - Section 65 of the Insurance Act 2003
  5. Motor third party insurance - Section 68 of the Insurance Act 2003
  6. Health care professional indemnity insurance - under Section 45 of the NHIS Act 1999

Non Admitted Policies

In Nigeria, accessing non admitted markets is guided by the provisions of Section 4 of the Nigerian Insurance Industry Prudential Guidelines 2015 which consolidated the various circulars and guidelines previously issued by the National Insurance Commission.

The general principle in play in accessing non admitted markets is that an application must be made to the National Insurance Commission for dispensation to insure any Nigerian domiciled risk outside the country.

Local market capacity must be fully utilised before such an application can be made to the Commission and in the event of the local market does not demonstrate an appetite for such risks declinatures must be obtained from the Insurers and their Treaty Reinsurers and evidence of same must accompany the application for dispensation to the Commission.

Only S&P or AM Best “A” Reinsurance markets are acceptable security for placements for consideration and approval by the Insurance Commission.

Applications must be filed with the National Insurance Commission by the lead local insurer in instances where a portion of the risk is to be placed in-country or by the (lead) broker in the event that the local market participation is not secured.

Nigerian Content Policy 

Local Content Policy 70 percent of the oil and gas business must be retained in Nigeria and 100 percent for life business.

New Product Research and Design            

Foreign reinsurers often provide product development and technical know-how to domestic direct insurers.

Marsh Contact
David Johnson
Femi Johnson & Company Ltd, 9th Floor Broking House, 1 Alhaji Jimoh Odutola Road, Dugbe , Ibadan, Oyo State , Nigeria
JohnsonDA@marshfjc.com

Oreoluwa Olarinmoye
Femi Johnson & Company Ltd, 9th Floor Broking House, 1 Alhaji Jimoh Odutola Road, Dugbe , Ibadan, Oyo State , Nigeria
OlarinmoyeOE@marshfjc.com