NAICOM Unveils Initiative to Raise Insurance Penetration to 10% of GDP by 2031

***• Insurers target 25 million Nigerians, 6,000 professionals, 250,000 MSMEs in 5-year ISSP blueprint ***

•*** Omosehin demands stronger ***underwriting, governance, claims settlement

•Leadway Assurance: programme will deepen penetration, confidence, trust

James Emejo in Abuja

National Insurance Commission (NAICOM), yesterday, unveiled a five-year industry-wide programme to significantly deepen insurance coverage in the country, targeting an increase in insurance penetration from the current 0.5 per cent of Gross Domestic Product (GDP) to 10 per cent by 2031.

The ambitious target is contained in the Insurance Sector Strengthening Programme (ISSP), a 36–60-month initiative launched by the commission in partnership with stakeholders in the insurance industry.

The programme seeks to tackle low public awareness, weak consumer confidence, distribution gaps, inadequate capacity, and limited access to insurance among women, youths, and Micro, Small and Medium Enterprises (MSMEs).

Speaking at the launch, Commissioner for Insurance/ Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, said the industry had reached a point where reform could no longer remain at the level of policy intentions but must translate into measurable improvements in coverage and consumer confidence.

Omosehin said despite the nation’s large economy and population, insurance penetration remained significantly below its potential, with many Nigerians either uninsured or underinsured.

He identified limited understanding of insurance products, trust deficit, capacity constraints and fragmented distribution channels as some of the factors holding back the industry’s growth.

According to him, the new programme would provide a structured response through six pillars covering advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and MSME and value-chain development.

He stressed that NAICOM’s regulatory mandate would remain anchored on policyholder protection and market stability, warning that industry expansion must not come at the expense of solvency, transparency and ethical conduct.

Omosehin said, “Regulation must serve as both a shield for policyholders and a compass for responsible market development.”

Omosehin stressed that operators must earn public confidence through compliance, professionalism and service excellence.

He further challenged insurers to strengthen underwriting, governance and claims administration, stressing that the next phase of industry growth must be built around adequate capitalisation, responsible underwriting, transparent operations, and prompt settlement of genuine claims.

The commissioner also identified digitalisation as critical to the industry’s expansion, stating that changing consumer expectations are making convenience, transparency and personalised financial solutions increasingly important.

He said the integration of digital platforms, insurtech solutions, and data-driven approaches would help make insurance products more accessible and position the industry to compete effectively in a rapidly changing financial services environment.

Supporting the initiative, Head, Commercial Division, Leadway Assurance, Mr. Olawale Alao, described the ISSP as a timely initiative capable of addressing the structural and perception challenges limiting insurance penetration in Nigeria.

Alao said the programme provided the industry with a structured platform to identify critical gaps in the insurance market and develop practical solutions to improve public understanding and participation.

He said the initiative was particularly important in changing the perception of insurance from an optional financial product to an essential component of everyday life and financial planning.

According to him, Leadway Assurance sees the programme as an opportunity to contribute to efforts aimed at widening insurance coverage and making insurance more relevant to Nigerians across different segments of society.

He said, “Over the next five years, we believe this initiative can deepen awareness, particularly among young Nigerians, build stronger trust in the sector and encourage more people to see insurance as an essential tool for protection and financial resilience.”

Alao stressed that increased awareness and trust would be critical to achieving a broader transformation of the sector, particularly among younger Nigerians who represent a significant segment of the country’s future consumer and investment population.

He stated that beyond expanding the number of people with insurance policies, the sector needed to ensure that Nigerians understood the value of insurance and were able to integrate it into their everyday financial decisions.

He said the programme’s structured approach would enable stakeholders to move beyond identifying challenges to implementing practical measures capable of producing sustainable improvements in insurance uptake.

Alao added that Leadway remained committed to supporting initiatives that would strengthen confidence in the industry and promote insurance as a key instrument for protecting households, businesses and livelihoods against financial shocks.

The ISSP executive summary painted a stark picture of the challenge confronting the industry.

It estimated that only about five per cent of Nigeria’s population currently had insurance coverage, while 78 per cent lacked basic insurance knowledge.

Women reportedly account for only 32 per cent of policyholders, while youths aged 18–35 constitute less than 20 per cent of the customer base. Coverage among MSMEs was put at just eight per cent.

The programme consequently targets nationwide interventions covering all 36 states and the Federal Capital Territory (FCT), with an ambitious beneficiary base that includes five million members of the general population, two million women entrepreneurs and decision-makers, 1.5 million youths, and 250,000 MSMEs.

It also plans to train 6,000 insurance professionals while deploying nationwide awareness and financial literacy campaigns aimed at strengthening consumer understanding and trust.

The programme is designed to initially triple insurance penetration from 0.5 per cent to 1.5 per cent of GDP by 2028, before pursuing the longer-term 10 per cent target by 2031.

The first 12 months will focus on establishing governance structures, conducting baseline assessments, stakeholder mapping, launching awareness campaigns, training and developing innovative product pilots.

The second phase, covering months 13 to 35, will scale interventions across the geopolitical zones, with targeted programmes for women, youths and MSMEs.

The final phase will focus on institutionalising successful interventions, knowledge transfer and sustainable financing mechanisms.

The initiative is also expected to operationalise key elements of the Nigeria Insurance Industry Reform Agenda (NIIRA 2025), particularly its emphasis on penetration, professionalism, innovation, regulatory compliance and consumer protection.

The ISSP framework proposes culturally relevant awareness campaigns across the country, specialist training and continuing professional development for practitioners, gender-sensitive products, digital-first products for young people and tailored insurance solutions for MSMEs.

The programme’s proponents believe that expanding insurance coverage among MSMEs could improve enterprise resilience, while greater participation by women and youths would create new customer segments and strengthen the industry’s long-term market base.

The programme also established a monitoring framework involving monthly tracking of penetration and coverage, quarterly reviews of demographic indicators, biannual assessment of professional training and certification, and annual evaluation of customer satisfaction and overall market impact.

Omosehin, however, cautioned that the industry’s transformation could not be achieved by regulation alone, stressing that insurers, intermediaries, professional bodies, technology providers, development partners, educational institutions and the media all had roles to play.

He said the ultimate objective was to rebuild public trust and transform insurance from an underutilised financial service into an instrument for economic resilience, social protection, wealth creation and national development.

He said, “The vision before us is ambitious, but it is achievable,” urging stakeholders to make the launch the beginning of a new era defined by inclusion, innovation, professionalism, trust and regulatory discipline.