In December 2023, Tunde’s older brother, Shadrack, passed away unexpectedly in a freak car accident. During their grief, the family had to come to terms with reality almost immediately. There were hospital bills and funeral expenses to settle, and Shadrack’s wife and two children still had to be catered for.
As the family rallied around for solutions, Tunde was reminded of a conversation he and Shadrack had years ago. In 2019, Shadrack told Tunde he wanted to get life insurance. He started making enquiries but never completed the process. Despite several reminders from Tunde, he indefinitely postponed the decision.
It took Tunde a year and two months to pay back the loan he took to fund some of the expenses the family incurred due to Shadrack’s passing. Yet, Tunde could not help but wonder how things would have panned out if there had been a financial safety net in place.
Stories like this are not uncommon. Yet, despite the realities of life and the increasing financial pressures families face, insurance penetration in Nigeria remains below one percent of GDP, one of the lowest rates globally. Industry experts estimate penetration at about 0.4 percent, despite a population exceeding 200 million people.
It is apparent that the challenge is no longer awareness alone. It is trust.
Trust is King
For decades, insurance in Nigeria has struggled with a perception problem. Many people know insurance exists. Some even understand its benefits. Yet, hesitation persists.
Nigerians are constantly asking the same questions when insurance is being discussed. Will they really pay when the time comes? Are the terms transparent? Will I spend years chasing claims? Can I trust them with my family’s wellbeing?
Insurance is ultimately a promise, and promises are only as valuable as the trust behind them.
Money is no longer the most valuable currency in financial services. It is trust. More than competitive pricing or product variety, customers want confidence. They want certainty that when life changes unexpectedly, their insurer will stand by them.
Without trust, life insurance remains a product people postpone. With trust, it becomes a pillar of financial planning.
The New Generation of Customers Expect More
Consumer expectations have changed significantly. The average customer compares their insurance experience not with other insurers, but with the best digital experiences they encounter every day.
People expect convenience. They expect transparency. They expect quick responses and seamless interactions. Long forms, confusing policy language and lengthy claims processes no longer inspire confidence.
Fortunately, the industry is evolving.
Digital transformation is reshaping the insurance experience across the world, and Nigeria is not left behind. From online policy purchases to self-service portals and faster claims administration, technology is helping insurers simplify interactions and improve accessibility.
These improvements matter because trust is built through experiences. Customers remember how quickly a question was answered. They remember how efficiently claims were processed. They remember whether promises made were promises kept.
Trust compounds over time through consistent service delivery.
Transparency Is Mandatory
Historically, one of the biggest barriers to life insurance adoption in Nigeria has been information asymmetry. Many policyholders only discover exclusions or limitations after filing claims. This creates disappointment and reinforces negative perceptions.
Today, insurance overall requires a different approach. Transparency must begin from the first interaction. Products should be explained clearly. Benefits should be easy to understand. Terms and conditions should not feel hidden behind technical language.
The objective should not merely be selling policies but helping people make informed decisions. Customers appreciate honesty, even when the answers are uncomfortable.
Clear communication strengthens credibility and creates relationships that endure beyond a single transaction. In today’s marketplace, transparency is not a competitive advantage. It is the minimum expectation.
Our Industry Is Progressing
Encouragingly, confidence within the Nigerian insurance industry is gradually improving. According to the National Insurance Commission (NAICOM), gross premium written rose to N2.3 trillion in 2025, a 47.3% year-on-year increase. Growth in life business, particularly annuities, has contributed significantly to this momentum.
Industry regulators noted that this performance reflects growing confidence in the market. However, this does not automatically translate to trust. Sustainable growth is dependent on how effectively and consistently the industry delivers value to policyholders.
Younger Nigerians are financially conscious. Millennials and Gen Zs are prioritizing financial wellness, wealth preservation and long-term security. They are open to insurance, but they require utmost transparency, accessibility and authenticity.
The opportunity before the industry is abundant, but confidence and trust cannot be rebuilt by one insurer only.
It requires collaboration across insurers, regulators, brokers, agents and other stakeholders. It necessitates better financial literacy, responsible innovation, ethical sales practices, and consistency.
You Can Trust Us
For us, life insurance exists to serve our people in this realm first before they transition. It is about continuity. It is protection for their dreams, education plans, businesses, and overall stability.
We understand and do not take for granted our role in enabling families move forward, even when life takes an unexpected turn. This is why your trust matters deeply to us at Coronation Life Assurance.
To begin your life insurance journey with us and learn more about our other products, contact us via email at info@coronationinsurance.com.ng or call 02-01-2275475 | 02-01-2275476.
Explore more articles from Coronation Life Assurance Limited, at https://coronation.ng/insights/
