The Nigerian motor insurance segment has emerged as the fiercest battleground in the financial services sector, with NEM Insurance Plc reinforcing its decade-long lead by posting a record 25.8 billion Naira in motor premiums for the 2024–2025 cycle. As of January 2026, the broader insurance industry has hit a historic asset base of 4.4 trillion Naira, fueled by the aggressive enforcement of the NIIRA 2025 Act.
This regulatory push has sparked an “arms race” among top underwriters, with Mutual Benefits Insurance and Leadway Assurance trailing NEM with premiums of 14.2 billion Naira and 11.05 billion Naira respectively. The competition is no longer just about price but about the speed of digital claims and the integration of AI to catch fraud.
The intense rivalry is being reshaped by the July 30, 2026, recapitalization deadline, which mandates that non-life insurers raise their minimum capital to 15 billion Naira. Industry giants like AXA Mansard and AIICO Insurance are leveraging their massive balance sheets with assets exceeding 230 billion Naira and 450 billion Naira respectively, to deploy advanced telematics and mobile-first products.
This technological shift has seen comprehensive motor premiums triple since 2020, as customers move away from basic third-party cover toward value-added plans that include free vehicle tracking and medical expense coverage up to 250,000 Naira for accident victims.
A critical differentiator in this new landscape is the removal of the mandatory police report for simple vehicle accidents. Under the NIIRA 2025 framework, insurers are now required to settle legitimate claims within 60 days based on eyewitness accounts and photo evidence, or face stiff penalties from NAICOM.
This “no-police-report” policy has drastically improved public trust, leading to a surge in retail adoption. Digital-native players like emPLE are further heating up the market by offering “Flexi Motor” tiers specifically designed for gig workers and students, allowing for monthly installment payments that were previously unavailable in the traditional market.
As the industry moves toward the final six months of the recapitalization window, experts predict a wave of “forced marriages” among smaller firms unable to meet the 15 billion Naira threshold. The resulting market will likely be leaner but far more robust, characterized by fewer players with the financial muscle to underwrite complex risks and the technical agility to provide real-time service. ]
For the Nigerian motorist, this competition is a net positive, resulting in higher property damage limits now standard at 3 million Naira, and a more transparent claims process that finally treats insurance as a reliable safety net rather than a regulatory burden.
