What is Insurance
Insurance is a means of protection from risk or threat, it could be financial, health-wise, and so on. It is a form of risk management primarily used to hedge against a contingent or uncertain loss risk.
Types of Insurance
- Health insurance
- Automobile/motor insurance
- travel insurance
- fire insurance
- life insurance
- home insurance etc.
Insurance companies
Insurance companies are financial institutions that are concerned with insurance. Insurance companies are companies whose primary purpose is to provide and sell insurance.
Functions of an insurance company
- It leads to risk reduction: Insurance companies help to reduce or control the loss or liabilities of businesses. It spreads the financial losses of the insured or business.
- Provides a means of savings: Insurance companies provide a means of saving regularly, which will help to provide for the future.
- Provision of security: Insurance companies provide security to commercial activities. Some small enterprises would have collapsed due to major losses, but insurance always takes care of such uncertainty.
- It serves as collateral security: life assurance policy provided by insurance companies can be used as collateral security to obtain loans from the bank for business investment.
Top 5 Insurance companies in Nigeria
1. AIICO Insurance Plc
- life Insurance and annuity
- Health insurance and Maintenance
- Asset Management
- General insurance and special risk.
AIICO commenced operations in Nigeria in 1963 as an Agency office of American Life Insurance Company (ALICO) at that time, a subsidiary of American International Group (AIG). The Company was incorporated, registered, and licensed in Nigeria as American Life Insurance Company Limited as a wholly owned subsidiary of ALICO/AIG in 1970 to offer Life and insurance services.
2. Lead Way Assurance Company
Leadway delivers efficient financial solutions leveraging on their unique capabilities and skills to bring Insurance as a risk management tool to their clients, their superior capabilities in Claims settlement as well as solid financial reputation are put behind their wide range of clients who have entrusted them with undertaking their risks.
Leadway provides commercial, personal property, casualty insurance, travel insurance, and life insurance.
3. Cornerstone Insurance Plc
Cornerstone Insurance Plc was incorporated on 26th July 1991 as a private limited liability company and became a Public Limited Liability, quoted on the Nigerian Stock Exchange in 1997. The organization was established to conduct Insurance business in a professional, ethical, and customer-focused manner and has remained committed to these values over the years.
Motor Vehicle Insurance, Aviation, Marine Insurance, Engineering All Risks, Asset Protection, Liability to Third Party, Oil & Gas, Group Life, Credit Life, Mortgage Protection, Term Assurance, Wealth Creation Products, and Takaful (Islamic Insurance).
4. African Alliance Insurance Plc
African Alliance Insurance Plc is widely recognized as the most experienced and strongest Specialist Life Assurance Office in Nigeria, serving thousands of customers with personalized insurance products tailored for each stage of their lives.
African Alliance Insurance Plc, was incorporated on May 6, 1960, by Chief S.L. Edu (CON), Mr. T. A. Braithwaite (CON), and Chief M.E.R. Okorodudu, backed by world-class reinsurers and co-shareholders, Munich Reinsurance Company.
Operating a network of over 15 branch offices managed by a competent and passionate team, they offer a creative combination of Protection (Term Assurance and Group Life), Savings, and Investments Products.
5. Lasaco Assurance Plc,
LASACO Assurance Plc is one of the top 5 insurance companies and also one of the fastest-growing Insurance Companies in Nigeria. It is a composite insurance company with various products and services. They were incorporated on the 20th of December, 1979, and licensed as an insurer on the 7th of July, 1980. They commenced full operation on 1st August 1980.
With the vast opportunities presented by increased capitalization for business expansion and growth, they became a Public Liability Company in 1991 when their Shares were admitted for the first time to the Nigerian Stock Exchange (NSE) through the listing by Introduction.
They have grown considerably in size, business coverage, profits, capital base, and assets with their operations spanning all classes of the Insurance and Special Risks business, high-impact financial services, and Real Estate managed by their subsidiaries.
Final thoughts
In this article, I have been able to define insurance, mentioned the types of insurance, explained the meaning of insurance companies, and the functions of insurance companies, I also went ahead to say the top 5 insurance companies in Nigeria which are AIICO Insurance Plc, Leadway Assurance Company, Cornerstone Assurance Plc, African alliance assurance Plc and finally Lasaco Assurance Plc.