Insurance industry practitioners have warned that the sector’s ability to deepen penetration and compete effectively in the regional market will remain limited unless stakeholders pursue more efficient reforms, expand retail reach and fully embrace technology-driven operations.
The call was made at the 25th Adetunji Ogunkanmi Memorial Lecture in Lagos, where speakers argued that the long-term growth of the industry depends on extending coverage beyond traditional corporate accounts to millions of underserved households and small businesses.
Nigeria’s insurance penetration, measured as premium volume relative to gross domestic product, remains at about one per cent, placing the country among the lowest in sub-Saharan Africa. By comparison, Ghana’s penetration is estimated at about two per cent, Kenya at 2.3 per cent, while South Africa exceeds 13 per cent.
Industry operators said the wide gap reflects deep structural barriers, weak enforcement of compulsory insurance policies and limited adoption of digital channels capable of reaching mass-market consumers.
Managing Director and Chief Executive Officer of the Nigeria Liability Insurance Pool, Adeyinka Adekoya, said the sector’s long-standing dependence on a narrow base of corporate clients has constrained growth and exposed insurers to higher risks. She noted that the lack of a strong retail focus continues to limit premium expansion and overall industry resilience.
According to her, resilience is central to the industry’s sustainability, but retail penetration remains the missing link, as most insurers still concentrate on corporate clients while millions of Nigerians remain uninsured.
Adekoya said insurers must move away from generic products and develop solutions tailored to everyday needs, including micro-insurance, health, agriculture, asset protection and embedded insurance, which have helped drive adoption in other markets.
She added that technology is the most practical tool for reaching widely dispersed consumers, stressing that digitalising operations and offering multiple access platforms are essential steps for expanding insurance coverage across the country.
She urged operators to learn from fintech companies, whose success in penetrating underserved communities shows what can be achieved through aggressive digital-first models.
Adekoya also pointed to opportunities created by the new Nigerian Insurance Industry Reform Act, which replaces the 2003 law and strengthens enforcement of compulsory insurance policies such as motor third-party insurance, builders’ liability and group life cover, saying effective implementation could significantly boost penetration.
