AXA Mansard Insurance has said Nigeria’s low insurance penetration is leaving households, businesses and other economic actors vulnerable to financial losses from unexpected events, with coverage remaining below one per cent of GDP.
The company said the insurance gap continued to expose individuals and businesses to the financial consequences of illness, accidents, business interruptions and other risks that could undermine economic stability.
The Chief Executive Officer of AXA Mansard Insurance, Kunle Ahmed, made the assessment while speaking on the company’s Culture of Care campaign.
Ahmed said narrowing the insurance gap would require more than increased public awareness, arguing that Nigerians needed to view insurance as a tool for protecting people, businesses and investments from financial shocks.
He said the industry should connect insurance more closely with the values of responsibility and care already evident in Nigerian society.
According to him, the effectiveness of Nigeria’s ongoing insurance-sector reforms would depend partly on whether stronger insurers could translate increased capital into greater protection for policyholders and the wider economy.
Ahmed said the recapitalisation of insurance companies should enable operators to assume larger and more complex risks, improve claims settlement, invest in innovation and support economic activity.
He identified sectors such as agriculture, manufacturing, infrastructure and digital services as areas where broader insurance coverage could help manage risks and support investment.
The AXA Mansard executive said the industry therefore needed to make insurance more relevant to the everyday financial concerns of households and businesses.
Healthcare protection
The Chief Executive Officer of AXA Mansard Health, Tope Adeniyi, highlighted healthcare as another area where inadequate insurance coverage could create significant financial pressure for families.
Adeniyi said medical expenses could quickly become a major burden for households when adequate health protection was unavailable.
He said AXA Mansard was pursuing preventive and curative healthcare initiatives, including AXA One Health, as part of efforts to improve access to healthcare and support caregivers.
According to him, healthcare should also be viewed from an economic perspective because inadequate access can affect household finances and reduce productivity.
He said stronger healthcare protection could therefore contribute not only to individual wellbeing but also to the financial resilience of families and the wider economy.
Savings and investment
The Chief Executive Officer of AXA Mansard Investments, Tunde-Anjo, said financial resilience also involved how households planned and prepared for future expenses.
He said savings and investment could provide families with resources to manage unexpected financial demands while helping them prepare for longer-term needs such as education, healthcare and housing.
His comments broadened the company’s Culture of Care message beyond insurance to include other forms of financial preparation and protection.
AXA Mansard said the campaign was intended to encourage a broader understanding of care and protection, while highlighting the role that insurance, healthcare, savings and investment can play in strengthening household and economic resilience.
The company’s position comes as Nigeria’s insurance industry undergoes regulatory and structural changes following the enactment of the Nigerian Insurance Industry Reform Act 2025 and the recapitalisation of insurance companies.
