Ibidolapo Balogun, the chairman of the Nigerian Insurance Association, said that under domestic law the independents should place a portion of their insurance coverage for their operations in the local insurance market.
However, the law has never been fully implemented due to the debates over the capitalisation of the underwriters and their ability to assume such risks.
Speaking at the Marsh National Oil Companies’ conference in Dubai, Mr Balogun said the market has been working to create consortiums that will provide the capacity and capital to assume those risks.
“In the past we have been seen as ‘post offices’ where the business is handed to us only to be placed internationally,” he said.
“We have come a long way and are now already expanding into other regional nations, creating not just underwriters but full financial services companies.”
However, the NIA head also raised fears that the independents will still seek to avoid dealing with the local markets.