The Nigerian insurance sector is poised to achieve a substantial milestone by the end of 2023, targeting a gross premium of N1 trillion compared to the N726 billion recorded in 2022, primarily driven by the adoption of electronic insurance coverage.
Mr. Olusegun Omosehin, President of the Nigerian Insurers Association (NIA), revealed this development during the ongoing 2023 Insurance Meets Tech conference themed “Unlocking Policy and Tech Bottleneck Hindering Disruptive Insurance Penetration” in Lagos.
Technology and collaboration
Omosehin emphasized the sector’s commitment to innovation and its role in fostering economic growth and securing national assets, despite economic challenges.
He highlighted the industry’s progress in premium generation, with a recorded premium income of approximately N726 billion in 2022.
The ambitious target of N1 trillion for 2023 reflects the sector’s determination to leverage technology and provide cutting-edge solutions to customers.
He emphasized the sector’s ongoing collaboration with regulators and other stakeholders to promote insurance culture and enhance its contribution to the national GDP.
Omosehin mentioned the industry’s efforts in the automobile insurance sector, including partnerships with several state governments, such as Lagos, to bolster insurance penetration and encourage the adoption of electronic third-party motor insurance, addressing existing gaps in distribution.
Odion Aleobua, Convener of the Insurance Meets Tech conference, highlighted the potential for exponential growth within the insurance industry, indicating its capacity to achieve more significant milestones.
While the industry achieved N726.2 billion in gross premium income in the fourth quarter of 2022, Aleobua noted that this figure merely scratches the surface of the industry’s potential.
He underscored the importance of embracing technology and innovation in shaping the future of insurance in Nigeria.
Aleobua expressed optimism that the conference, Insurance Meets Tech 2.0, would serve as a platform to harness this potential by bringing together visionaries, innovators, and industry leaders committed to pushing the boundaries of what insurance can achieve in Nigeria.
Ayo Bankole, CEO and Founder of Caladium Consulting, highlighted the low penetration of insurance in Nigeria, attributing it to insurance often appearing abstract to the average Nigerian.
He emphasized the need for the insurance industry to leverage data and technology to make insurance products more accessible and unique to the average Nigerian, following the example set by the banking sector in harnessing technology for competitive advantage.
Bankole called for progressive and deliberate efforts to drive innovation and technology adoption in the insurance industry, emphasizing the need for collaboration and the use of multiple channels, similar to the banking sector’s approach.
He commended the outcome of the previous Insurance Meets Tech event and expressed optimism that the 2023 edition would lead to increased collaboration, innovation, and transformation within the insurance industry.