Stakeholders in Nigeria’s insurance sector have raised concerns over the low adoption of group life insurance, despite it being compulsory under the Pension Reform Act 2014.
The law requires all employers to provide group life insurance covering at least three times an employee’s annual earnings. However, compliance remains weak, particularly in the private sector and at state and local government levels, leaving many families financially vulnerable in the event of death.
While federal employees benefit from coverage facilitated by the Office of the Head of Service of the Federation, many other workers lack similar protection.
Industry expert Chika Onwunali stressed that workplace risks and unexpected deaths can devastate families without adequate insurance, calling for stronger enforcement and awareness.
Similarly, Adetola Adegbayi highlighted the broader benefits of inclusive group life policies, noting that extending coverage to outsourced staff enhances workforce protection and financial security for beneficiaries.
Group life insurance accounts for about 26% of Nigeria’s life insurance premiums, reflecting its importance, especially after the COVID-19 pandemic underscored the need for financial safety nets.
Some progress has been recorded at the state level, with states like Lagos State and others implementing contributory pension schemes that include group life coverage. Notably, Lagos recently paid N701 million in death benefits to families of deceased public servants.
Stakeholders, however, insist that wider compliance is critical to safeguarding workers and ensuring financial stability for their families, urging employers and governments to treat group life insurance as both a legal obligation and a social responsibility.
