The search for affordable products and easier access to insurance is driving a new wave of innovation in Nigeria’s insurance industry, as underwriters increasingly turn to technology and simplified covers to break the barriers limiting wider adoption of insurance.

The development is being reinforced by the launch of an enhanced third-party motor insurance policy and a digital insurance application by Anchor Insurance Company Limited, highlighting growing industry efforts to move beyond conventional products and reach millions of Nigerians who remain either uninsured or inadequately insured.

At the unveiling of the products in Lagos, Chief Executive Officer of Anchor Insurance, Ebose Augustine, said the company’s latest initiatives were designed to address two critical challenges confronting insurance consumers: affordability and accessibility.

The enhanced third-party motor policy, he explained, is intended to provide motorists with more meaningful protection than conventional third-party insurance while remaining cheaper than comprehensive motor cover.

Augustine said the product was developed in recognition of the fact that many motorists are caught between buying basic third-party insurance to satisfy statutory requirements and paying the substantially higher premium required for comprehensive cover.

“For years, motorists have faced a difficult choice. They could purchase basic Third-Party Motor Insurance to satisfy legal requirements and remain largely unprotected against damage to their own vehicles, or they could purchase Comprehensive Motor Insurance at a significantly higher cost,” he said.

According to him, the new product seeks to bridge the protection gap by offering additional cover at a price that remains accessible to individuals, families, institutions and small businesses.

The development is significant for an industry that has struggled to translate Nigeria’s large population and expanding economic activity into widespread insurance ownership, with affordability, awareness, distribution and consumer confidence continuing to constrain market penetration.

Industry analysts have increasingly argued that expanding insurance coverage would require insurers to develop products around the financial realities of ordinary Nigerians rather than relying predominantly on conventional annual policies and established distribution channels.

Technology is also emerging as an important part of that transition, particularly as mobile phones and digital payment platforms provide insurers with new channels for reaching retail customers, processing policies and managing claims.

Anchor’s new app is built around policy and purchase management as well as claims management, allowing customers and brokers to purchase eligible products, make payments through supported digital channels, receive policy documents electronically and initiate and track claims.

Augustine said the platform would reduce dependence on paperwork and give policyholders greater visibility into the claims process.