Market Insights Financial Insurances Non-life insurances

Legal Insurance - Nigeria

Nigeria

The Legal Insurance market market in Nigeria is expected to reach a projected market size (gross written premium) of US$28.69m in 2024.
In the same year, the average spending per capita in the Legal Insurance market market is estimated to be US$0.13.
Looking ahead, the gross written premium is predicted to exhibit an annual growth rate (CAGR 2024-2029) of -8.20%, resulting in a market volume of US$18.70m by 2029.
When compared globally, it is noteworthy that the United States is anticipated to generate the highest gross written premium in the Legal Insurance market market, reaching US$31,030,000.0k in 2024.
Despite the growing importance of legal insurance in Nigeria, the market remains largely untapped due to low awareness and limited access to legal services.

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Analyst Opinion

The Legal Insurance market in Nigeria has seen significant growth and development in recent years.

Customer preferences: Customers in Nigeria are increasingly recognizing the importance of legal insurance to protect themselves and their businesses from potential legal issues. With the growing awareness of legal rights and the complexities of the legal system, there is a rising demand for legal insurance products to provide financial assistance in case of legal disputes.

Trends in the market: One of the key trends in the Legal Insurance market in Nigeria is the expansion of insurance companies offering specialized legal insurance products. This trend is driven by the need to cater to specific legal needs of different customer segments, such as individuals, small businesses, and corporations. Additionally, there is a growing trend towards customization of legal insurance policies to suit the unique requirements of each customer.

Local special circumstances: In Nigeria, the Legal Insurance market is also influenced by the regulatory environment and legal system in the country. The complex legal landscape and the prevalence of legal disputes make legal insurance an essential investment for individuals and businesses. Moreover, the increasing focus on corporate governance and compliance further drives the demand for legal insurance among businesses operating in Nigeria.

Underlying macroeconomic factors: The growth of the Legal Insurance market in Nigeria is also supported by favorable macroeconomic factors. The country's steady economic growth, rising disposable income levels, and increasing awareness about risk management contribute to the expansion of the legal insurance sector. Furthermore, the government's efforts to improve the ease of doing business and enhance legal infrastructure create a conducive environment for the growth of the legal insurance market in Nigeria.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.