The National Insurance Commission (NAICOM) has launched a five-year strategy aimed at dramatically expanding insurance coverage in Nigeria, with the industry targeting penetration of 10 per cent of Gross Domestic Product by 2031.
The initiative, known as the Insurance Sector Strengthening Programme (ISSP), is designed to address longstanding challenges including low public awareness, weak confidence in insurance providers, limited distribution networks and inadequate industry capacity.
The 36- to 60-month programme brings together NAICOM and key industry stakeholders in an effort to move insurance growth beyond policy declarations and towards measurable improvements in coverage and consumer experience.
Speaking at the launch in Abuja, Commissioner for Insurance and Chief Executive of NAICOM, Olusegun Ayo Omosehin, said Nigeria’s insurance industry had significant room for expansion, noting that penetration currently stood at about 0.5 per cent of GDP.
He said the country’s large population and economy had not translated into corresponding insurance coverage, leaving many Nigerians either without insurance or with insufficient protection.
Omosehin attributed the industry’s limited reach partly to inadequate understanding of insurance products, a lack of consumer trust, capacity limitations and fragmented distribution channels.
The ISSP will operate around six broad areas: advocacy and policy, public awareness and education, capacity development, gender inclusion, youth participation, and support for micro, small and medium-sized enterprises and their value chains.
The NAICOM chief emphasised that efforts to grow the market would have to be matched by stronger consumer protection and sound regulatory standards.
He urged insurance companies to improve underwriting practices, corporate governance and claims management while maintaining adequate capitalisation, transparency and ethical standards.
According to him, the industry’s ability to settle legitimate claims promptly and operate responsibly would be critical to rebuilding public confidence.
“Regulation must serve as both a shield for policyholders and a compass for responsible market development,” Omosehin said.
Digital technology is also expected to play a central role in the programme. NAICOM said the adoption of digital platforms, insurance technology and data-driven solutions could improve access, convenience and transparency while helping insurers respond to changing consumer expectations.
The commission is also seeking to expand participation among groups that have historically had limited access to insurance, particularly women, young people and MSMEs.
Supporting the programme, Leadway Assurance’s Head of Commercial Division, Olawale Alao, described the ISSP as a timely response to both structural and perception-related challenges facing the sector.
Alao said the programme could provide insurers with a coordinated framework for identifying market gaps and developing practical measures to improve public understanding and participation.
He argued that a major priority should be changing the perception of insurance from an optional financial product into an important part of household, business and personal financial planning.
The ISSP sets out an ambitious path for the sector, with industry stakeholders expected to translate its targets into wider coverage, improved service delivery and greater confidence among policyholders over the next five years.
