Insurance Stakeholders Call for Coordinated Reforms to Boost Sector Penetration in Nigeria
Stakeholders across Nigeria’s insurance ecosystem have renewed calls for coordinated reforms aimed at deepening insurance penetration and unlocking the sector’s full potential as a driver of economic growth. The call was made during the Insurance Sector Transformation Consultative Forum 2026, a high-level industry gathering designed to accelerate reforms, rebuild consumer confidence, and reposition the insurance industry for broader economic impact.
The forum brought together regulators, policymakers, insurance executives and representatives of the financial services ecosystem under the theme of collective advocacy for the transformation of Nigeria’s insurance industry.
The event was convened by EnterpriseNGR in collaboration with the Nigerian Insurers Association and the Lagos Chamber of Commerce and Industry, highlighting growing consensus within the sector that stronger collaboration and coordinated policy implementation are required to drive meaningful progress.
Senate Committee on Banking, Insurance and Other Financial Institutions, Tokunbo Abiru, emphasized that the recently enacted Nigeria Insurance Industry Reform Act represents a major legislative milestone for the sector. According to him, the law was designed to modernize the country’s insurance framework, strengthen operational standards and address longstanding structural gaps that have limited the industry’s growth.
However, he stressed that the success of the legislation will depend largely on effective implementation and collaboration among stakeholders. He noted that while passing the reform law was a critical step, meaningful transformation will only occur when operators, regulators and policymakers work together to execute its provisions.
Industry leaders also highlighted the persistent challenge of extremely low insurance penetration in Nigeria, which remains below one percent of the country’s Gross Domestic Product. This level is significantly lower than penetration levels in many emerging and developed markets, where insurance contributions range between three and eleven percent of GDP.
According to experts at the forum, raising Nigeria’s penetration rate even to three percent would represent a major expansion of the industry and significantly strengthen its role in economic stability, investment mobilization and risk management for households and businesses.
Participants at the consultative forum identified several structural factors responsible for the slow growth of insurance adoption across the country. These include limited public awareness of insurance products, low trust among consumers due to disputes over claims settlement, and inefficiencies in service delivery that discourage potential policyholders.
Stakeholders argued that addres
sing these issues will require stronger consumer education campaigns, greater transparency in claims management, and improved service standards across the industry to rebuild public confidence.
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Experts also emphasized the importance of innovation and technology in expanding insurance coverage. Digital distribution channels, improved data systems and more accessible retail insurance products were identified as key tools for reaching underserved populations, including micro, small and medium-sized enterprises as well as individuals in the informal sector.
Expanding digital insurance platforms could significantly reduce distribution costs and improve accessibility for millions of Nigerians who currently lack adequate risk protection.
EnterpriseNGR Chairman Aigboje Aig-Imoukhuede noted that the broader objective of the industry’s reform agenda is to elevate the relevance of insurance within Nigeria’s financial system and overall economy.
According to him, a stronger and more inclusive insurance sector would not only provide financial protection for individuals and businesses but also contribute to long-term capital formation, economic resilience and sustainable growth.
As the reform momentum gathers pace, stakeholders say the next phase will focus on translating policy commitments into measurable outcomes through stronger regulation, improved industry coordination and sustained public engagement. If successfully implemented, these reforms could mark a turning point for Nigeria’s insurance sector, positioning it to expand coverage, strengthen financial stability and play a more prominent role in supporting national economic development.
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