Insurance
From The Report: Nigeria 2023
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The insurance sector has only skimmed the surface of what Nigeria’s economic growth could offer. However, raising gross written premium is likely to require a change in the market’s current structure. The large number of competitors – and the limited financial capacity of some of them – has made it difficult for the sector to deepen its penetration. The delay in the implementation of higher minimum capital requirements is likely to further stall consolidation in the short term, but the lingering effects of the Covid-19 pandemic and the reduction in oil output could encourage policymakers to take steps towards fostering stronger insurance providers. Raising the low rate of insurance penetration in the country is tied to efforts to address persistent levels of unemployment and poverty. Better economic conditions are expected to play an important role in supporting the sector’s growth.

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Overview

Room to develop: Unlocking the potential for insurance providers to expand their offerings as the economy continues to grow
OBG
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Despite decades of activity, Nigeria’s insurance sector is still largely underexplored, with the industry’s penetration at less than 1% of GDP as of March 2022. The country’s demographic growth – the population is forecast to surpass 233m people by 2025 – combined with its growing economy makes the insurance sector ripe for a significant expansion in the years to come. To unlock its potential, the sector will have to overcome historical obstacles to growth. For example, the fragmentation…

Analysis

Digital protection: A fragmented insurance market looks to tech solutions
OBG
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Despite Nigeria’s economic and demographic potential, insurance penetration remains low. Both established players and smaller newcomers are considering digitalisation, which is likely to accelerate client acquisition. The digitalisation trend is nascent, with tech insurers accounting for a small portion of global premium, but is expanding across the continent. It is expected to be further facilitated by the development in May 2023 of the National Blockchain Policy, which aims to provide a framework…