If you’ve landed on this article page, you’re probably searching for a
good business idea—an idea that’s light on the pocket but heavy on
returns, promising both a fulfilling journey and potential profit.
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How To start an insurance company in
Nigeria
An insurance company creates products that give individuals,
families, and businesses financial protection against the risks
and losses they face. To offer suitable coverage, insurance
companies evaluate these risks and draft policies detailing the
terms and conditions. They then sell the policies in exchange
for insurance premiums.
Launching an insurance business requires careful planning
and preparation.
Setting goals is crucial in giving your business a clear picture
of where it wants to go, how to reach these targets, and what
new products and services it can offer. It also plays a key role
in keeping you and your employees motivated. If set correctly,
your business goals can help you measure how successful your
insurance company is.
Find your niche.
As clients’ needs evolve constantly, so does the demand for
different insurance products. This presents an opportunity for
your insurance company to find a niche that will help it grow.
While the road to discovering your business’ niche market takes
plenty of time and effort, it can also reap dividends in the
long run.
Which body regulates insurance companies in Nigeria?
The body in charge of insurance in Nigeria is the National
Insurance Commission (NAICOM). The government established NAICOM
in 1997, and since then they have handled the responsibility of
effective regulation, supervision, administration and control of
all insurance businesses in Nigeria. Also, they protect all
parties in an insurance contract, including the policyholder,
their beneficiaries and third parties.
What comprises an insurance company?
If you want to start an insurance company, you must also
understand the different roles needed to keep your operations
going. Here are some of the professionals comprising an
insurance business:
Often considered the frontliners of an insurance company, agents
are responsible for selling your policies. They represent your
company and serve as intermediaries, informing potential clients
about your company and its offerings. Insurance agents also have
the power to bind coverage.
Insurance broker
Insurance brokers have a role like an insurance agent with a few
key differences. Unlike agents, brokers represent the insurance
buyers and can offer policies from different insurance
companies. They also don’t normally have the power to bind
coverage.
Here’s a step-by-step guide on how to become an insurance broker
if you want to be one. Learn the pros and cons of being an
insurance broker shared by the expert here.
Insurance underwriter
Insurance underwriters assess the risks posed by potential
clients to determine if your company can provide coverage. They
work closely with other insurance professionals to strike a
balance between offering competitive premiums and maintaining
your company’s profitability.
Claims adjusters and investigators are tasked to assess and
investigate claims to determine how much you should pay for the
damages and losses. These professionals are also responsible for
ensuring that claims aren’t fraudulent.
Insurance actuary
An insurance actuary’s job involves pricing policies. They also
give you advice on how your company can meet regulatory
compliance and help you balance your capital.
Actuaries are tasked to maintain daily communication with
clients and implement risk management tools.
Account manager
Account managers are responsible for supervising client
relationships. Their duties include addressing the concerns of
policyholders and ensuring that they’re satisfied with the
service they receive.
Account managers also explain insurance coverage and pricing to
your clients and work with agents to boost sales.
Risk manager
Risk managers oversee your company’s insurance program. They
help evaluate potential risks and advise you on how these can be
mitigated or prevented.
Customer service representative
Customer service representatives or CSRs act as frontline
support for your clients. They often provide customers with
useful information by answering their queries. CSRs also respond
to complaints to ensure that policyholders are satisfied with a
product or service.
How to start an insurance company: a step-by-step guide
What makes an insurance business an appealing venture is the
strong growth potential that comes with it. But establishing
your own insurance company requires meticulous planning and
preparation.
Here are the steps you need to take when starting an insurance
company from scratch:
Have a sound business
plan.
The first step to establishing any type of business is gaining a
strong understanding of how companies run. This includes having
a sound business plan.
A business plan outlines your goals for the company and the
steps you intend to take to achieve them. Having a reasonable
business plan can also help you identify key markets and secure
funding for your insurance company.
Investing in the insurance business is very lucrative and
rewarding. But it is important that you have a thorough
knowledge of the industry before diving in. In addition, you
must also have enough start-up capital base to launch the
business.
Get our Practical Training Guide on How to set up an Insurance
Company in Nigeria. In this guide we will give you a
step-by-step walkthrough on how to start an insurance company
from scratch. We will also discuss the different factors you
need to consider to ensure that your business is profitable.
Find out what it takes to build a successful insurance company
in this guide.
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