Experts emphasize resilience, digitalisation, and retail-focused products as keys to sector growth
Stakeholders in Nigeria’s insurance sector are calling for technology-driven strategies to expand access and improve penetration, particularly in the retail market. The message emerged during the 25th Adetunji Ogunkanmi Memorial Lecture, themed “Beyond Insurance: Building Resilience, Health, and Legacy,” which explored the challenges and opportunities in Nigeria’s insurance industry.
Resilience and Retail Penetration
Mrs. Adeyinka Adekoya, Managing Director of the Nigeria Liability Insurance Pool, highlighted the sector’s over-reliance on corporate clients while noting the untapped potential among everyday Nigerians.
“Resilience is the root of everything we are discussing here. 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 need to rethink product development to meet the needs of everyday people. She noted that traditional agent-led distribution is insufficient to reach Nigeria’s large and diverse population.
Embracing Technology to Reach the Masses
Digitalisation, she argued, is essential to bridge the gap and increase penetration:
“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.”
She highlighted that Nigeria’s insurance penetration is just 3%, far below what it could be given the population of over 200 million. According to her, penetration should target 10–15%, achievable by offering multiple digital platforms that make insurance accessible and convenient.
“Fintech banks penetrate local markets remarkably well. Insurance can and should leverage technology to reach the same audience,” she added.
Opportunities with the Nigerian Insurance Act
Mrs. Adekoya also pointed to the new Nigerian Insurance Act (NIRA 2025), which replaces the 2003 legislation, noting that while some policies are now compulsory, insurers should make products attractive enough that consumers willingly purchase coverage.
Resilience, Health, and Legacy
Mr. Stephen Alangbo, MD/CEO of Cornerstone Insurance Plc, echoed the need for resilience amid risks such as climate change and political instability. He also emphasized the importance of health and legacy, highlighting insurance as a tool for long-term security.
“If you have all the money but you don’t have health, you are poor. Legacy is also key—what we leave behind defines our contribution to society. Insurance helps us safeguard health, wealth, and future generations,” he said.
Alangbo expressed optimism about the future of insurance in Nigeria:
“Insurance penetration is improving. From the Presidency to NAICOM to NIA, initiatives are underway to strengthen the industry. With compulsory insurance, regulatory support, and the new NIRA, the sector is becoming more attractive. I wouldn’t be surprised if, like South Africa and other Western countries, insurance-owned banks emerge strongly in Nigeria soon.”
The Path Forward
Stakeholders agree that resilience, digitalisation, and retail-focused strategies are critical to growing Nigeria’s insurance sector. By leveraging technology and tailoring products to meet the needs of ordinary Nigerians, the industry can achieve greater financial inclusion, higher penetration, and sustainable growth.
