Nigeria’s insurance sector may be adopting artificial intelligence (AI), digital platforms, and tech-enabled distribution models — but let’s be honest: insurance apathy, low awareness, and deep-rooted distrust are still slowing down real growth.
Daily Independent’s latest findings reveal a truth many industry experts already know: technology alone can’t fix the insurance education gap. And until that gap is closed, the sector will continue losing billions in potential premiums.
AI Can’t Replace Human Trust — At Least Not Yet
Sure, AI chatbots are great for answering simple questions, but when it comes to insurance — a product built on trust — Nigerians still prefer talking to a real human being.
Researchers noted that:
- AI often delivers half-baked answers
- Physical agents offer real-time clarification
- Face-to-face contact builds confidence and trust
- Customers make faster buying decisions when guided by professionals
For many Nigerians, especially small traders and low-income earners, insurance messages sent via SMS or email are simply ignored.
Market Women Aren’t Reading Those Digital Messages
Take market women, for instance. Between sourcing goods, attending to customers, and managing daily hustle, who has time to read long insurance messages?
The result?
They miss opportunities to buy products designed to protect their businesses and families.
The Human Touch Matters — And Nigerians Agree
Mr. Uzor Osigwe, a clearing agent, believes human interaction is everything.
His words:
“If you call customer service, you may not understand what they’re saying… but face-to-face, you get answers instantly.”
He even admits that he doesn’t bother opening insurance messages in his inbox — unless it’s from his principal.
Yet ironically, his clients buy marine insurance and goods-in-transit policies — proof that the products are useful, but the communication is not.
“Are They Going to Give Me Money?” — The Trust Problem
Angela Ukala, a petty trader, summed up the public sentiment perfectly:
“Even when you do insurance, you won’t see the money to collect.”
Her frustration reflects decades of delayed claims, policy miscommunication, and lack of transparency — all leading to distrust.
Broken Promises: The Customer Who Felt Cheated
Then there’s Mike Okolie, a transporter. He shared his disappointing experience after trying to access money from a life insurance policy he paid into for five years.
“It means they collected my money without telling me the truth… when I needed money as they promised, what I got was story.”
Stories like Mike’s reinforce why many Nigerians fear that insurance companies are either:
- Unreliable
- Dishonest
- Too complicated
- Or simply uninterested in their customers
So What’s the Real Issue?
Tech is improving accessibility, but:
- Insurance education is still low
- Public apathy remains high
- Trust is weak
- Customer experience is inconsistent
Without fixing these fundamentals, even the best insurance apps won’t move the needle.
The Way Forward
To unlock real growth in Nigeria’s insurance sector, industry experts suggest:
- Massive awareness campaigns
- Clear, simplified product communication
- Transparent claims processing
- Stronger agent presence
- Customer-first service delivery
- Blending tech with human interaction
Because in a country where distrust runs deep, technology must enhance the human relationship — not replace it.
