Insurance
Understanding How Insurance Works in Nigeria – And Why Every Nigerian Should Insure Their Property
In Nigeria, insurance is not just a legal requirement in some sectors—it is a vital tool for financial protection and peace of mind. At Colenson Brokers, we’ve been at the forefront of Nigeria’s insurance industry since 1983, helping individuals, businesses, and institutions understand and access the right coverage tailored to their needs.
How Insurance Works in Nigeria
Insurance in Nigeria operates on the principle of risk pooling. Policyholders pay a premium to an insurance company, which in turn guarantees compensation for specific losses, damages, or liabilities covered under the policy. The National Insurance Commission (NAICOM) regulates the industry, ensuring that both insurers and brokers like Colenson operate with integrity and accountability.
There are two major categories of insurance in Nigeria:
Life Insurance – Offers financial protection to the beneficiaries of the policyholder in the event of death or permanent disability.
General Insurance – Covers non-life assets, such as buildings, vehicles, businesses, and other valuables. Common types include:
Motor Insurance (Third-party and Comprehensive)
Fire and Special Perils Insurance
Burglary Insurance
Marine Insurance
Travel Insurance
Health Insurance (via HMOs)
Why Insurance Is Important for Every Nigerian
1. Protection Against Unforeseen Losses
Floods, fire, theft, road accidents, and building collapses are all too common. Insurance ensures that when the unexpected happens, you’re not left alone to bear the financial burden.
2. Peace of Mind
Knowing your properties—whether personal or business-related—are protected brings peace of mind. It allows you to focus on growth and productivity rather than worry about potential loss.
3. Financial Stability
Recovering from property loss can be financially devastating. Insurance cushions that impact, enabling you to bounce back faster.
4. Legal and Contractual Compliance
Some forms of insurance, like third-party motor insurance or employer’s liability, are required by law. Additionally, banks and business partners often demand insurance before engaging in contracts or offering loans.
5. Support for Business Continuity
For businesses, insurance is critical to managing operational risks. A fire or theft could cripple your operations—unless you’re insured. Colenson Brokers helps businesses stay afloat even when challenges strike.
Colenson Brokers – Your Trusted Insurance Partner
Established by Dr. Michael Olawale-Cole (CON) in 1983, Colenson Brokers is one of Nigeria’s longest-operating and most trusted insurance brokerage firms. With exposure to both local and international insurance markets—including Lloyd’s of London—we bring world-class solutions to Nigerian clients.
Our team of professional, dynamic, and competent staff is dedicated to helping you secure the future. Whether you’re insuring your home, car, business, or industrial assets, we’re here to guide you every step of the way.