Despite recording growth in recent years with gross written premiums reaching about N1.56 trillion in 2024, Nigeria’s insurance penetration remains below one per cent, far below the global average, prompting stakeholders’ calls for coordinated reforms and stronger collaboration to deepen adoption and rebuild public confidence in the sector.

The concerns were part of the focus of discussions at the Insurance Sector Transformation Consultative Forum 2026 held on Wednesday in Victoria Island, Lagos, where senior policymakers, regulators and industry leaders gathered to chart a path for growth and reform in the industry.

The high-level forum, held under the theme, ‘Driving Collective Advocacy for the Transformation of Nigeria’s Insurance Industry’, was convened by EnterpriseNGR in collaboration with the Nigerian Insurers Association and the Lagos Chamber of Commerce and Industry (LCCI) with support from Leadway Holdings, Custodian Investment Plc, Olaniwun Ajayi LP and Coronation.

Chairman of EnterpriseNGR, Aigboje Aig-Imoukhuede said strengthening the insurance industry was critical to building a vibrant financial and professional services sector that supports economic growth.

He mentioned, “Right now, we are under one percent penetration in terms of insurance-to-GDP ratio. Some countries are at three percent, others at 11 percent. If we grow from where we are today to three percent, that is tripling the sector and if we go to 11 percent, that is ten times growth. The effect on the overall economy will be tremendous.”

Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Omosehin emphasised that transforming the insurance sector had become imperative as Nigeria seeks to reposition its economy.

“Given the ambition of President Bola Tinubu on the direction of the transformation of the Nigerian economy, the transformation of the insurance sector is no longer optional. It has to commence now,” he said, adding that stronger collaboration across the financial services ecosystem was needed to achieve the desired transformation.

The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Tokunbo Abiru, said the recently enacted Nigeria Insurance Industry Reform Act (NIIRA) was designed to modernise the country’s insurance laws and strengthen the sector.

Abiru said: “We just passed the Nigeria Insurance Industry Reform Act, which is a piece of legislation that has been signed into law by the President to enhance the operations of insurance in the country. The law is to modernise and improve all of the pieces of legislation that relate to insurance in this country.”

He added that the success of the reform would depend on cooperation across the industry.

“The essence of this gathering goes beyond putting the law in place, but to begin to implement the legislation. Implementation can best be achieved if we have cooperation and collaboration among all the players in the industry,” he said.

Adding her voice, the Director-General of the Nigerian Insurers Association, Bola Odukale, stressed the importance of collaboration as the industry begins to implement key reforms.

“The talks about collaboration are very important because we are transitioning in terms of reforms, like the NIIRA Act 2025, which is going to transform our market. When we are talking about transformation, you actually need people with whom you will collaborate. You cannot do everything just by yourself,” she said.

Participants at the forum identified limited consumer awareness, trust issues linked to claims disputes and inefficiencies in customer experience as some of the key factors responsible for the low adoption of insurance products in Nigeria.

They called for greater transparency in claims management, improved consumer education and stronger industry-wide service standards to rebuild trust and expand market penetration across retail, MSME and corporate segments.

Stakeholders also explored how innovation, technology and digital transformation could expand insurance access through digital platforms, InsurTech solutions and partnerships with fintech companies and telecom operators.

They further highlighted the importance of strengthening human capital within the industry, particularly in areas such as actuarial science, digital capabilities and advanced risk management, while emphasising stronger collaboration between industry stakeholders, professional bodies and academic institutions.

Additionally, they explained that a stronger insurance sector could mobilise long-term capital to support key sectors of the economy, including infrastructure, agriculture, healthcare, energy and the digital economy.

They agreed on the need for sustained collaboration across the industry to accelerate reforms, improve service delivery and strengthen public confidence in insurance, adding that the recommendations from the forum would guide ongoing engagement with policymakers and regulators aimed at expanding insurance penetration and supporting Nigeria’s economic growth.