Industry stakeholders highlight resilience, technology, and legacy as pillars for a stronger insurance sector
Stakeholders in Nigeria’s insurance industry have emphasized the critical role of resilience, retail penetration, and digitalisation in addressing the sector’s challenges and driving sustainable growth. Their insights were shared during the 25th Adetunji Ogunkanmi Memorial Lecture, themed “Beyond Insurance: Building Resilience, Health, and Legacy.”
Resilience: The Foundation for Growth
Mrs. Adeyinka Adekoya, Managing Director of Nigeria Liability Insurance Pool, highlighted the sector’s over-reliance on corporate clients while noting the untapped potential in the retail market.
“Resilience is the root of everything we are discussing. It gives us the ability to cope when life throws unexpected challenges. But one thing missing in the Nigerian insurance sector today is penetration of the retail market. Most insurers target corporate businesses, yet if we want the masses to benefit from insurance, deliberate efforts must be made to tailor products for ordinary Nigerians,” she said.
Mrs. Adekoya stressed that insurers must rethink product development to address the needs of everyday Nigerians. Current offerings, she noted, often fail to attract the large untapped market, and the traditional reliance on agents is insufficient for nationwide penetration.
Digitalisation: Bridging the Gap
Technology emerged as a key enabler in expanding access to insurance.
“Without technology, reaching the nooks and corners of Nigeria will be very difficult. We have to digitalise and be deliberate in our efforts if we want to reap the fruits of our labour in the future,” Mrs. Adekoya explained.
She further argued that Nigeria’s insurance penetration remains far below its potential—only 3% compared to an ideal 10–15% given the country’s population of over 200 million. Leveraging digital platforms, she said, is essential for improving accessibility and creating multiple avenues for customers to purchase insurance conveniently.
Opportunities with the New Nigerian Insurance Act
Mrs. Adekoya also highlighted the opportunities presented by the new Nigerian Insurance Act (NIRA 2025), which replaces the 2003 legislation. While some insurance products are now compulsory, she encouraged insurers to make coverage attractive enough for voluntary uptake, driving both inclusion and growth.
Health, Legacy, and Long-Term Vision
Echoing the call for resilience, Mr. Stephen Alangbo, Managing Director of Cornerstone Insurance Plc, emphasized the role of insurance in safeguarding health and legacy amid rising risks such as climate change and political instability.
“Resilience is critical because a lot of things are working against us—from climate change to political instability. Health is equally important; without it, even wealth cannot protect us. Legacy matters too—what we leave behind when we pass on defines our contribution to society,” he said.
Alangbo also expressed optimism about the future of insurance in Nigeria:
“Insurance penetration is improving. From the Presidency to NAICOM to the National Insurance Association, initiatives are underway to make insurance more attractive. With the new NIRA, compulsory insurances, and strengthened regulatory support, I foresee a future where insurance in Nigeria mirrors the robust systems we see in South Africa and other Western markets.”
The Road Ahead
Stakeholders agree that retail market expansion, digitalisation, and resilient operational strategies are key to unlocking Nigeria’s insurance potential. By leveraging technology, simplifying access, and creating products tailored to ordinary Nigerians, the sector can significantly increase insurance penetration, financial inclusion, and long-term growth.
