AFRICA

RISKSA Magazine - - In­ter­na­tional News - In the re­port, A.M. Best says that

New re­port de­clares Nige­ria’s in­sur­ance sec­tor ripe for in­vestors De­spite fluc­tu­at­ing oil prices threat­en­ing Nige­ria’s eco­nomic ex­pan­sion, A.M. Best – a US-based rat­ing agency that fo­cuses on the in­sur­ance in­dus­try, has de­clared in a spe­cial re­port the coun­try’s in­sur­ance sec­tor of­fers sig­nif­i­cant po­ten­tial for for­eign in­vestors at­tempt­ing to build a pro­file in the mar­ket.

Nige­ria’s In­sur­ance Sec­tor Faces Eco­nomic Chal­lenges, but New Govern­ment Im­proves Prospects, Nige­ria is now the largest econ­omy in Africa, fol­low­ing the 2014 re­bas­ing of Nige­ria’s gross do­mes­tic prod­uct (GDP) that re­sulted in a nearly 90 per cent rise in the size of the coun­try’s econ­omy; mak­ing it an at­trac­tive in­vest­ment for global fi­nan­cial play­ers. Re­fer­ring to the de­cline in oil prices, De­niese Imoukhuede, as­so­ciate di­rec­tor, an­a­lyt­ics, said: “In spite of such chal­lenges, there ap­pears to be some signs of re­newed con­fi­dence in the econ­omy and the coun­try’s fu­ture fol­low­ing the ac­ces­sion of the new govern­ment led by Muham­madu Buhari.” Imoukhuede an­tic­i­pates that Buhari will bring about much-needed changes by re­duc­ing cor­rup­tion, and im­ple­ment­ing eco­nomic re­forms by re­duc­ing the coun­try’s re­liance on oil and in­creas­ing for­eign in­vestor in­ter­est in Nige­ria through the prom­ise of greater trans­parency. A.M. Best pre­dicts that should these ex­pec­ta­tions tran­spire, greater con­fi­dence in Nige­ria will likely at­tract fur­ther in­ter­ests into its largely un­tapped in­sur­ance mar­ket.

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