Insurance in Nigeria is a sensitive topic as Nigerians still need to have an understanding of how the market works and how they can buy into it.

Currently, Africa is one of the world’s burning regions for the insurance market. Africa’s insurance industry is valued at about $68 billion in terms of GWP (Gross Written Premium) and is the eighth largest in the world—although this is not equally distributed across the continent (McKinsey, 2020).

The National Insurance Commission regulates the Nigerian insurance industry and is governed by the Insurance Commission Act 1997 and Insurance Act 2003. The insurance industry in Nigeria is still growing and developing. However, it only contributes 0.7% toward Gross Domestic Product (GDP).

Insurance aids a country’s economic growth and development, Africa is currently on this path. PWC in a report stated that Africa has exhibited growth in life premiums of 12.8% and non-life premium of 2.1% in 2013. Over the past decade, the Nigerian insurance industry has grown steadily and this can be shown in the total premiums which have gone from about N75 billion in 2005 to over N300 billion currently. Foreign investors have shown a great interest in the Nigerian insurance sector through entry into the market.

From the PWC report on Nigeria Insurance survey 2020, approximately only 1.5% of all Nigerian adults are covered by insurance today. Uninsured Nigerians face risks and require better mechanisms to mitigate these risks as an alternative to the informal arrangements currently in use. The low insurance penetration in Nigeria is, in part, a consequence of the lack of trust and confidence in insurance companies. A contributor to this perception of the market is the limited knowledge of insurance amongst the public. To fully penetrate the market, it is important to develop a strategy to educate Nigerians and earn the trust of Nigerians.

Despite the obvious growth in the insurance sector, it is important that the market develops and meet up with other emerging market.

What we do

  • Brand awareness
  • Insurance landscape
  • Concept testing

To obtain a quote or proposal for Insurance in Nigeria, send an email to info@webhaptic.com