With an estimated N2.5 trillion premium target for Nigeria’s insurance sector in 2025, Sanlam, Allianz and other global insurance powerhouses are set to leverage the sector’s potential to revolutionise the industry.
Allianz, the German insurer, operates in nearly 70 countries and serves over 100 million customers worldwide, underscoring its scale and influence in the global insurance sector. While Sanlam, Africa’s largest non-banking financial services provider, also maintains a significant continental presence with offices in more than half of the continent’s 54 countries and has consistently demonstrated confidence in Nigeria’s insurance market.
Having crossed the N1 trillion premium income mark in 2023, Nigerian insurance is set for strong growth in 2025, as Olusegun Omosehin, Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), aligns with the substantial market optimism.
“Industry statistics revealed that its trajectory has consistently moved in the direction of the premium generation over time. The market will likely close at about N2.5 trillion in 2025. The growth of the industry is desirable owing to the role of the finance & insurance sector in economic growth through the creation of liquidity, intermediation and wealth protection,” he said at the 2025 Insurance Stakeholders’ Consultative Forum, organised by Lagos Chamber of Commerce and Industry (LCCI) at the beginning of the year.
According to the National Bureau of Statistics (NBS), Nigeria’s GDP for 2024 was up by 3.2 percent, with key sectors driving growth. In the first nine months of 2024, the Finance and Insurance sector spearheaded an impressive 30.3 percent increase, highlighting the increasing importance of insurance as a critical enabler of Nigeria’s trillion-dollar aspirations.
The policy environment also illustrates an industry aiming for progress. The imminent enactment of the Nigeria Insurance Industry Reform Act of 2024 introduces a risk-based regulatory framework and adjusted capital thresholds for insurance businesses, strengthening the sector’s foundation.
This projected upside in the Nigerian insurance market also aligns with global optimism. Statista, an international market research outfit, estimated that the Nigerian insurance market will reach a market size (gross written premium) of $7.84 billion in 2025, over N12 trillion.
The well-publicized potential of the Nigerian insurance market has been attracting international insurers’ investments and confidence in the country’s insurance market. This inflow of investment brings capital and introduces best practices and innovation, further engendering the industry for sustainable development. It is, therefore, intriguing to see the number of global insurance brands already in the market striving to improve customer product development and reap the rewards of growth.
At the top of the list is Allianz, which, according to Interbrand, a global leader in brand strategy and consultancy, ranked first as the top insurance brand globally in its Best Global Brands 2024 report, a testament to its worldwide dominance and stellar reputation.
The company offers various products, including life, health, property, and motor insurance, alongside its asset management and risk solutions leadership. With over 130 years of history, Allianz has built a legacy of financial strength, innovation, and unwavering commitment to customer-focused services.
Allianz’ operations in Nigeria aim to re-establish their global reputation as a leading provider of comprehensive insurance solutions. Licensed to offer a broad range of Life and Non-Life insurance products nationwide, they deliver tailored offerings such as Motor, Life, Travel, and Home Insurance for individuals, along with robust corporate insurance solutions that support businesses nationwide.
In a similar development, according to Statista, Sanlam ranks top as Africa’s leading and largest insurer by revenue in 2022. As Africa’s foremost insurance provider, Sanlam is increasingly establishing itself as a market leader in the Nigerian insurance industry. Founded in South Africa more than a century ago, the company has skillfully navigated and tailored its offerings in life insurance, asset management, and general insurance services to meet the unique needs of the African market.
In Nigeria, Sanlam has demonstrated unwavering confidence in the market, offering solutions designed to meet the unique needs of individuals and businesses alike. Its product portfolio includes innovative savings and financial protection plans that support business growth and life insurance policies to provide financial security for families. With a deep understanding of the African landscape and extensive global expertise, Sanlam has earned a reputation as a trusted partner for Nigerians seeking to protect their futures and build lasting wealth.
In addition to leaders like Allianz and Sanlam, other global insurance brands are thriving in Nigeria. AXA Mansard (France) offers health, life, and property insurance. Prudential Life Insurance (UK) excels in life insurance and Liberty Health provides comprehensive healthcare plans.
Global reinsurers like Lloyd’s of London, AIG, Everest Re, PartnerRe, Hannover Re, Sirius International, Trust Re, Sava Re, China Re, GIC Re, and Sompo Japan support Nigerian insurers through partnerships and reinsurance arrangements. Notably, Swiss Re holds a stake in Leadway Group, one of Nigeria’s largest insurance companies, further strengthening its presence in the market.
Strategic investments also play a key role. The InsuResilience Investment Fund, managed by Swiss-based BlueOrchard Finance, holds a significant stake in Royal Exchange General Insurance Company, now Rex Assurance, supporting its growth and resilience initiatives. Royal Exchange Assurance, established in the UK, has been operating in Nigeria since 1918, offering a wide range of insurance services. Marsh, a global leader in insurance broking and risk management, provides industry-focused brokerage, consulting, and claims advocacy services in Nigeria.
Despite the low penetration rate of 0.5 per cent of GDP, against a global average of 7 per cent, Nigeria’s insurance sector is poised for growth. According to Global Data, a leading data analytics and insights provider, the Nigerian insurance market could grow at a compound annual growth rate (CAGR) of 7.5 percent between 2023 and 2027, driven by expansion in life and non-life insurance segments. Factors such as increasing urbanisation, a rising middle class, and regulatory reforms create a favourable environment for the industry. NAICOM has been strengthening the regulatory framework while encouraging innovation and competition.
Global brands like Allianz, Sanlam and others are well-positioned to champion this growth. Their international expertise, proven track record, and ability to adapt to local conditions give them a competitive edge. However, while the opportunities are significant, challenges are prevalent. Some hurdles these big players must overcome are low adoption and awareness about insurance, cultural barriers, and economic volatility. However, industry experts believe international insurance brands may help turn these challenges into opportunities with the right strategies.
As Allianz, Sanlam, and other players continue to innovate and expand their reach, the future of Nigeria’s insurance sector looks promising. This could mean greater financial security and confidence for millions of Nigerians in an uncertain world.
