Five-year industry plan targets 25 million Nigerians, 6,000 professionals and 250,000 MSMEs
The National Insurance Commission has unveiled a five-year strategy aimed at dramatically expanding insurance coverage in Nigeria, with the regulator targeting an increase in insurance penetration from its current 0.5 per cent of Gross Domestic Product to 10 per cent by 2031.
The target is contained in the Insurance Sector Strengthening Programme, a 36-to-60-month industry-wide initiative developed by NAICOM in collaboration with stakeholders.
The programme is designed to address persistent barriers to insurance growth, including low public awareness, weak consumer confidence, inadequate distribution networks and limited industry capacity.
It also places particular emphasis on expanding access among women, young Nigerians and micro, small and medium enterprises.
Speaking at the programme’s launch in Abuja, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, said the industry had reached a stage where reforms needed to produce measurable improvements rather than remain largely policy statements.
He said Nigeria’s large population and economy provided considerable room for insurance growth, but a substantial proportion of individuals and businesses remained uninsured or underinsured.
According to Omosehin, inadequate understanding of insurance products, a trust deficit, capacity limitations and fragmented distribution channels continue to constrain the sector.
Six-pillar strategy
The ISSP is structured around six major areas: advocacy and policy support, public awareness and education, professional capacity building, gender inclusion, youth engagement and innovation, and MSME and value-chain development.
The programme will cover all 36 states and the Federal Capital Territory and is expected to deliver targeted interventions to millions of Nigerians.
Its beneficiary targets include five million members of the general population, two million women entrepreneurs and decision-makers, 1.5 million young people and 250,000 MSMEs.
The initiative also aims to train 6,000 insurance professionals and intermediaries while deploying nationwide financial-literacy and awareness campaigns.
The strategy will initially seek to raise insurance penetration threefold, from 0.5 per cent of GDP to 1.5 per cent by 2028, before progressing towards the 10 per cent target by 2031.
Women, youths and MSMEs targeted
The programme’s designers identified significant gaps in current insurance participation.
The ISSP estimates that only about five per cent of Nigerians currently have insurance coverage, while 78 per cent lack basic knowledge of insurance.
Women account for about 32 per cent of policyholders, according to the programme, while Nigerians aged 18 to 35 make up less than 20 per cent of the customer base.
Insurance coverage among MSMEs is estimated at only eight per cent.
To address these gaps, the initiative will promote gender-sensitive products, digital-first offerings for younger consumers and tailored solutions for smaller businesses.
Stakeholders believe broader MSME coverage could help businesses withstand financial shocks, while greater participation by women and young people could provide the industry with new and potentially significant customer segments.
NAICOM demands better underwriting and claims service
Omosehin said the industry’s expansion must be accompanied by stronger standards in underwriting, corporate governance and claims management.
He warned that growing the market should not undermine solvency, transparency, ethical conduct or policyholder protection.
He said insurers would have to earn consumer confidence through compliance, professionalism and improved service delivery, particularly through prompt settlement of legitimate claims.
The commissioner also identified digitalisation as an important driver of future growth, noting that consumers increasingly expect convenience, transparency and financial products tailored to their needs.
He encouraged greater adoption of digital platforms, insurance technology and data-driven approaches to make insurance easier to access and more responsive to changing consumer behaviour.
Leadway backs industry-wide programme
Supporting the initiative, the Head of Commercial Division at Leadway Assurance, Olawale Alao, described the ISSP as a timely response to both structural and perception-related problems within Nigeria’s insurance market.
Alao said the programme could help the industry move from simply identifying challenges to implementing practical measures capable of increasing participation.
He said one of its important objectives should be changing the perception of insurance from an optional financial product into an essential part of personal and business financial planning.
According to him, greater awareness and trust would be especially important among young Nigerians, who represent a major segment of the industry’s future customer base.
He added that the programme could help position insurance as an important tool for protecting households, businesses and livelihoods against financial shocks.
Implementation to take place in phases
The ISSP will be implemented in three broad stages.
The first 12 months will focus on setting up governance structures, conducting baseline studies, mapping stakeholders, launching awareness campaigns, training professionals and developing pilot products.
The second phase, covering months 13 to 35, will expand successful interventions across Nigeria’s geopolitical zones, with specific programmes targeting women, youths and MSMEs.
The final stage will focus on institutionalising successful initiatives, transferring knowledge and establishing sustainable financing mechanisms.
The programme will also use a monitoring framework to track its progress. Penetration and coverage will be monitored monthly, demographic indicators reviewed quarterly, professional training and certification assessed twice a year, while customer satisfaction and overall market impact will be evaluated annually.
Collaboration critical to success
Omosehin stressed that regulation alone would not be sufficient to achieve the industry’s transformation.
He called for cooperation among insurers, brokers and other intermediaries, professional associations, technology companies, development partners, educational institutions and the media.
The initiative is expected to support the implementation of key elements of the Nigeria Insurance Industry Reform Agenda 2025, particularly its focus on greater penetration, professionalism, innovation, regulatory compliance and consumer protection.
Omosehin said the ultimate objective was to transform insurance into a more widely used instrument for economic resilience, social protection and wealth creation.
He described the 2031 target as ambitious but achievable, provided stakeholders remain committed to inclusion, innovation, professionalism, consumer trust and regulatory discipline.
