Despite decades of effort, Nigeria’s insurance industry has remained stagnant, with penetration stuck at a mere 1%, leaving 99% of the country’s over 220 million citizens uninsured. Yet, industry experts remain optimistic, insisting that the sector is brimming with untapped opportunities that must be harnessed through collective effort and reform.
A Call for Collaboration
Experts argue that to unlock the sector’s full potential, collaboration between key stakeholders—policyholders, operators, and regulators—is critical. Each must play a proactive role in rebuilding trust, expanding access, and positioning insurance as a tool for national development, security, and financial inclusion.
From life and health coverage to agriculture and property insurance, uptake remains low due to weak public engagement and widespread misconceptions. Insurance professionals agree that while the potential is vast, public ignorance and distrust remain the biggest barriers to progress.
The Power of Real-Life Stories
Industry stakeholders believe that one of the most effective ways to change public perception is through authentic, real-life stories from Nigerians who have benefited from insurance. According to Olufemi Abbas, a former head of the Insurance Department at Lagos State University, the sector has long suffered from a credibility deficit due to misleading practices, complex policy language, and delayed claims.
“The only way forward is through consistent education—fueled by facts, real stories, and clear, relatable examples of insurance at work,” Abbas said.
Sharing testimonies of successful insurance claims, especially in relatable contexts, can help dispel myths and foster a better understanding of the industry’s value.
Shattering Misconceptions
During a recent engagement with insurance students from universities across the country, many admitted they viewed insurance as a niche profession reserved for elites. Others cited religious concerns and perceived complexity as deterrents. Experts emphasize that the industry must break away from outdated stereotypes and reimagine insurance as a product accessible and relevant to all Nigerians.
This shift, they say, will require a comprehensive approach: mapping out the uninsured population, understanding their needs, and crafting policies that are simple, affordable, and tailored to their realities. Transparent regulations, better consumer protection, and effective grievance redress systems are also essential in building trust.
Regulatory and Technological Solutions
Insurance expert Mr. Samuel Adesokan highlighted three pillars for expanding insurance coverage in Nigeria: affordability, accessibility, and public trust. He emphasized the importance of enforcing compulsory insurance laws and expanding microinsurance products for low-income earners.
“Regulators must push for broader access to essential covers, such as third-party motor insurance and national health insurance,” Adesokan said. “At the same time, public education campaigns must demystify insurance, and community leaders must help explain it in ways that resonate culturally.”
He added that digital technology could play a transformative role, suggesting mobile platforms, USSD codes, and fintech partnerships to simplify the purchase, payment, and claims process. Making insurance as easy to access as mobile data could drastically increase adoption.
Mandatory Participation and Government Leadership
Segun Bankole, Deputy General Manager at Sovereign Trust Insurance Plc and Chairman of the Corporate Affairs Managers of Nigerian Insurance Association (CAMCONIA), believes that stronger government participation is essential.
“Insurance must be embedded in every aspect of national life—just like in Europe and the U.S. Government agencies and institutions must lead by example by insuring their properties and operations,” he said. “Strict enforcement of compulsory insurance laws and awareness creation are non-negotiable if we hope to widen coverage.”
Bankole added that regulators must support insurers not just by penalizing non-compliance, but by promoting industry growth through effective policies and partnerships.
A Strategic Roadmap
Former Chairman of the Nigerian Insurers Association (NIA), Mr. Gus Wiggle, noted that while a roadmap exists, expanding it requires a more strategic and inclusive approach. This includes developing innovative, needs-based products and strengthening regulations to ensure stability and consumer protection.
He called for targeted outreach using both traditional and digital media, particularly to underserved populations such as low-income earners, informal sector workers, and small business owners.
Innovating for Inclusion
Product innovation and digital integration are key to the sector’s growth, according to industry analysts. Microinsurance, community-based plans, and flexible premium models designed for rural and informal populations can drastically increase coverage. Technology should be used to handle enrollment, premium payments, and claims processing via mobile platforms and digital IDs.
Bundling insurance with services such as healthcare, credit, and agriculture inputs was also identified as a promising strategy. Experts advocate for wide distribution through partnerships with NGOs, cooperatives, and telecom companies. Public-private partnerships could also expand outreach while mitigating risk.
The Role of Education and Training
Training insurance agents and brokers to understand local contexts is critical. Experts recommend consistent insurance literacy campaigns via radio, schools, and community events to build public understanding and trust.
The message is clear: Nigeria’s insurance sector holds immense promise—but unlocking it will require innovation, technology, regulatory support, and a determined effort to educate and win the trust of the Nigerian people.
