Nigeria’s economy remains exposed to significant financial risks as insurance penetration stays below one per cent of Gross Domestic Product, AXA Mansard Insurance has said.
The insurer said the low level of coverage leaves households, businesses and other economic operators bearing much of the financial burden arising from illness, accidents, business interruptions and other unexpected events.
The Chief Executive Officer of AXA Mansard Insurance, Kunle Ahmed, made the remarks at the launch of the company’s “Culture of Care” campaign.
Ahmed said closing Nigeria’s insurance gap would require more than simply increasing public awareness, arguing that Nigerians needed to view insurance as a practical tool for protecting livelihoods, investments and businesses.
“Protection does not begin with an insurance policy. Protection begins with people,” he said.
Recapitalisation must translate into stronger protection
His comments come amid significant regulatory and structural changes in Nigeria’s insurance sector, following the passage of the Nigerian Insurance Industry Reform Act 2025 and the recapitalisation of insurance companies.
Ahmed said the impact of recapitalisation should not be measured solely by the size of insurers’ balance sheets.
He said stronger capital bases should enable insurers to underwrite larger risks, settle legitimate claims more efficiently, invest in innovation and provide greater support for economic activity.
According to him, sectors such as agriculture, manufacturing, infrastructure and digital services could benefit from deeper insurance coverage by reducing risks and encouraging investment.
‘Insurance should be seen as an expression of care’
Ahmed said the industry also needed to connect insurance with values already embedded in Nigerian society, particularly the responsibility individuals and institutions have to protect people who depend on them.
He said the central challenge was not simply a lack of awareness but changing perceptions about the purpose of insurance.
“The challenge is therefore not simply awareness. The challenge is helping Nigerians see insurance not as an expense, but as a practical expression of care,” Ahmed said.
Healthcare protection and household resilience
The company also linked Nigeria’s low insurance penetration to the broader issue of household financial resilience.
The Chief Executive Officer of AXA Mansard Health, Tope Adeniyi, said inadequate healthcare protection could expose families to substantial financial pressure when illness occurs.
The comments highlight the potential role of insurance in helping households manage unexpected healthcare costs while strengthening their ability to withstand wider economic shocks.
For the insurance industry, AXA Mansard said, expanding coverage will ultimately depend on making insurance more relevant to the everyday financial needs of individuals, families and businesses.
