Insurance Industry practitioners have warned that the industry’s ability to deepen penetration and compete for the regional market will remain constrained unless stakeholders evolve efficient reforms, broaden retail reach and embrace technology-driven operations.
Speaking at the 25th Adetunji Ogunkanmi Memorial Lecture in Lagos, stakeholders argued that the future of the market lies in expanding coverage beyond traditional corporate accounts to millions of underserved households and small businesses.
Nigeria’s insurance penetration, measured as premium volume relative to GDP, remains around one per cent, one of the lowest in sub-Saharan Africa.
Ghana is estimated at two per cent, Kenya, 2.3 per cent, while South Africa sits above 13 per cent.
Operators said the gap reflected structural barriers, weak enforcement of compulsory insurance and poor adoption of digital channels that can reach mass-market consumers.
Managing Director/Chief Executive of the Nigeria Liability Insurance Pool, Adeyinka Adekoya, said the sector’s historic reliance on a narrow base of corporate clients has constrained growth and exposed insurers to high risks.
She noted that the absence of a strong retail engine continues to limit premium expansion and resilience across the industry.
“Resilience is the root of everything we are discussing here. But the big missing link today is retail penetration. Most insurers still focus on corporate, yet the future of this industry and the real protection gap lie with ordinary Nigerians who remain uninsured,” she said.
Adekoya stressed that product design must shift from generic offerings to solutions tailored to meet everyday needs – micro-insurance, health, agriculture, asset protection and embedded insurance – which have proven to accelerate adoption elsewhere.
She argued that technology remains the most realistic lever for reaching dispersed consumers.
“Without technology, reaching the nooks and corners of Nigeria will be very difficult for us. Digitalising our operations and offering multiple platforms through which customers can access insurance products are basic steps we must take,” she said.
Adekoya urged the industry to draw lessons from fintechs, whose penetration into underserved communities demonstrates what is possible with aggressive digital-first models.
She also highlighted opportunities created by the new Nigerian Insurance Act (NIIRA), which replaces the 2003 law and strengthens enforcement of compulsory insurance, including motor third-party, builders’ liability and ground life.
