The Nigerian insurance industry has been ranked 70th worldwide in premium volume, significantly trailing behind South Africa, which holds the 20th position, and the United States, which tops the global rankings. This ranking was highlighted in a new report launched by FITC, a financial training and consulting institution.
The report, which gathers insights from top industry executives, provides a comprehensive analysis of Nigeria’s insurance sector, examining its current state, post-COVID-19 challenges, existing gaps, and emerging opportunities.
FITC recently convened key industry players for the report’s launch event, themed “Driving Sustainable Growth in the Insurance Industry: Through Digitisation, Collaboration & Customer-centric Strategies.” The event served as a platform for industry leaders, regulators, and stakeholders to deliberate on the report’s findings and explore actionable strategies for the future of Nigeria’s insurance sector.
FITC’s managing director and CEO, Dr. Chizor Malize, in her opening remarks, described the report as a strategic tool designed to address both the challenges and opportunities in the industry. She emphasized the critical role of digitization and operational efficiency in driving growth and called for a stronger focus on customer-centric strategies to meet evolving consumer expectations.
“The insurance industry in Nigeria must not only adapt to the changing landscape but also take charge of embracing technology and collaborative solutions,” she stated.
The Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, lauded FITC for its efforts in shaping the future of Nigeria’s insurance sector. In his keynote address, he highlighted the report’s importance in tackling key industry challenges such as data integrity, regulatory frameworks, and innovation.
“The insurance sector plays a critical role in fostering economic stability, protecting against risks for individuals and businesses alike,” Omosehin noted. “This report is a positive step towards enhancing the industry’s vibrancy and sustainability.”
Despite several initiatives to boost insurance adoption, penetration in Nigeria remains below one per cent of GDP—one of the lowest in the world. During a virtual presentation, Dr. Stanley Jacob, CEO of Zest Payments, pointed out the immense untapped potential within the Nigerian insurance market. He emphasized that Africa as a whole lags behind the global average, urging industry stakeholders to adopt innovative solutions to close the gap.
With increasing economic uncertainty and growing risks, industry leaders believe that a shift toward digitization, stronger regulatory frameworks, and enhanced consumer trust could drive the sector’s growth. However, without immediate reforms and greater adoption of technology, Nigeria’s insurance sector may continue to lag behind its global and regional peers.
