Taking the Right Insurance

Insurance is the business of making provisions for risks. Whether the risks are to our person or our business, the objective is to make sure the person taking out the insurance is protected from loss, and where loss is unavoidable, it is mitigated and its impact on those affected is lessened,

Therefore, a business relationship is established between the insurer and the insured, whereby the latter provides instalmental payments, known as premiums, to the insurer in order to qualify for protection should the anticipated event occur. The business is structured on offering these services to protect against risk to a large number of customers, knowing that only a few would actually have the problem, which is settled with the pooled funds.

Headquarters of the regulator, NAICOM

While these funds await the insured events, the insurers usually put them to good use in the meantime, most of the time investing in financial instruments and other interest-bearing securities such as bonds, Treasury bills, commercial papers and stocks.

Overtime, many insurance companies have also developed many products to cater for a wide variety of needs and issues, that make them attractive vehicles for investment and raising capital for an individual managing his or her personal finances. Many of these investment opportunities are of medium-term tenor and prove very useful for people saving toward a target and seeking to save money for the rainy day.

Follow our website to get current information that will alert you to market trends as well as investment opportunities in the insurance industry. Learn also about the best practices, the dos and the don’ts, so that you’ll be able to make the most suitable choices for your finances.

Useful link: Registered Insurance Companies in Nigeria.