Insurance firms in Nigeria must pursue international ratings for financial credibility

Babajide Oniwinde, former head of strategy at Nigeria's National Insurance Commission, stressed that insurance companies require international ratings to strengthen financial credibility. This emphasis follows his remarks on the theme 'International Rating of insurance companies in Nigeria' where he highlighted the importance of independent assessments by global credit rating agencies.

A positive rating enhances an insurer's share price as investors perceive the company more favorably when it has undergone rigorous evaluation.

Having a strong international rating serves as a marketing tool, enabling insurers to attract high-quality business volumes and differentiate themselves from less stable competitors through superior capitalization and management.

Additionally, ratings facilitate access to capital markets by attracting foreign investment and improving earnings profiles, which supports sustainable growth and operational expansion for insurers.