Stakeholders in Nigeria’s insurance sector have emphasised the critical role of resilience in navigating the challenges facing Nigeria’s insurance industry, as it enables the ability to cope with unexpected challenges.
This, they emphasised at the 25th Adetunji Ogunkanmi Memorial Lecture themed “Beyond Insurance: Building Resilience, Health, and Legacy,” highlighting its importance in navigating the complexities of the insurance sector.
MD/CEO of Nigeria Liability Insurance Pool, Mrs Adeyinka Adekoya, highlighted the sector’s over-reliance on corporate clients while lamenting the low penetration of insurance products in the retail market.
“Resilience is the root of everything we are discussing here. It gives us the ability to cope when life throws unexpected challenges,” Mrs Adekoya noted. “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 urged stakeholders to rethink product development with a focus on meeting the actual needs of everyday people, noting that current offerings fail to attract the large untapped market. “We need to do more than what we are currently doing. In most cases, insurance products are sold through agents, but we need to go beyond that.”
She stressed the importance of embracing technology, emphasising that “without technology, reaching the nooks and corners of Nigeria will be very difficult for us.”
“So we have to digitalise and be deliberate in our efforts if we want to reap the fruits of our labour in the future,” she added.
“The truth is, I don’t think we are doing enough in selling insurance, and that’s why penetration remains very low. If you compare Nigeria’s penetration level to other African nations, especially given our population size, it’s clear we are lagging behind.”
“How can insurance penetration be just 3 per cent with over 200 million people? Considering Nigeria’s current level of sophistication, insurance penetration should be at least 10 to 15 per cent,” she argued. “The only way to achieve this is by going back to basics: digitalising our operations and offering multiple platforms through which customers can easily access insurance products.”
“Today, many insurance companies provide platforms that allow customers to buy insurance from the comfort of their homes, but we need to go beyond even that.”
“If you look at the fintech banks, they penetrate local markets remarkably well. Insurance can and should leverage technology to reach that same audience,” she added.
Mrs Adekoya also pointed out the opportunities presented by the new Nigerian Insurance Act (NIRA), which replaces the 2003 legislation. Although some policies under NIRA are compulsory, she recommended making insurance appealing enough that consumers willingly purchase coverage.
Speaking at the event and as the MD/CEO of Cornerstone Insurance Plc, Mr Stephen Alangbo echoed the need for resilience amid growing risks, including climate change and political instability. He emphasised the importance of health and legacy, underscoring the role of insurance in providing financial security.
“For us in this part of the world, we need resilience because a lot of things are working against us—from climate change to political instabilities and all that. There are also numerous risks. The more we adopt a mindset to stay longer, the better it is for us.
“Then we talk about health. If you have all the money but lack health, you are poor. It’s generally beneficial to take care of your health.
“And when you talk about legacy, Tunji’s legacy is what we talk about today. And it’s better for us, not only as Cornerstone ambassadors but as citizens of Nigeria. There’s a need for us to be able to say, if we leave, what are we leaving behind? It takes a sacrifice from everybody. If you leave yourself now, there’s a need to decide what we are giving and what we are getting. That will help us leave a nation we can be proud of when we grow old or pass away.
“So legacy is key for us as Nigerians, to ensure that when we close our eyes, what can they say about us? In Yoruba, they say, ‘Let’s close our eyes and do as if we are dead, and let’s see who and who will keep house for us. Let’s see what people will say about us.’ If that is key, then it’s better to take that very seriously than what we gain here.”
Speaking about insurance penetration in the country, Mr Alangbo said that insurance penetration is not as it ought to be, but many factors are working to improve the situation.
“From the Presidency to the National Insurance Commission to the National Insurance Association, everything is working to make insurance improve—from compulsory insurance to the stance of the new management of NICOM to NIA with the new NIRA.
“It will make insurance very attractive. And we all need to look forward to what the industry will be in the future, because it’s brighter. I won’t be surprised if, just like in South Africa and some Western countries where insurance-owned banks are strong, we see a similar trend in Nigeria in the very near future. I will not be surprised.”