Nigeria’s insurance companies want to make more than N1 trillion in gross premiums this year. They plan to use technology to increase the use and acceptance of insurance products in the country.
This was made clear at the Insurance Meets Tech (IMT 2.0) meeting, which had the theme “Unlocking Policy and Tech Bottlenecks Holding Back Disruptive Insurance Penetration.”
The insurance companies in Nigeria want to increase the number of people with insurance beyond the current level of less than 1%. To do this, they want to beat last year’s record of N726.2 billion gross fee.
Olusegun Omosehin, President of the Nigerian Insurers Association (NIA), spoke at the event. Even though the country faces problems like inflation and a lack of infrastructure, insurers are using technology to drive growth.
With this, he said that by the end of 2023, the gross rate for insurance in Nigeria is likely to be more than N1 trillion.
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commitment to expansion
The NIA President pointed out that the insurance companies are also working with industry officials to make people more aware of insurance and then said:
“In this age of growing technological advances and digital disruptions, the insurance industry has stayed strong and resilient despite the economic headwinds challenging our country. We reaffirm our commitment to drive innovation for economic growth and to protect the future of our businesses and national assets.”
Something is absent
Microsoft Client Technology Lead Wole Odeleye said embeddedness is missing in the insurance industry during a panel session at the event to explain why insurance penetration in Nigeria is still less than 1% despite years of efforts to drive adoption.
He suggests integrating insurance services into banking, which Nigerians have already adopted, to increase popularity.
He said this method helped fintechs in Nigeria succeed by integrating into the financial system and capitalising on Nigerians’ hobbies.
Technology platforms to facilitate insurance uptake have improved for most insurance companies in the last four years. Much has been done to improve customer experience. It’s not perfect, but it’s improved. Collaborations have gained attention. The road is still lengthy. This is because insurance is not correctly integrated into financial services.
Insurance services in Nigeria may not scale until then. Because they embedded their products into financial services, fintechs can scale. According to Odeleye, they began as financial services extensions.
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Insurtechs’ success
In his welcome address, Insurance Meet Tech Convener Odion Aleobua said the success of insurtech companies with millions of dollars in investment shows the importance of embracing technology and innovation to shape Nigeria’s insurance future.
He said the Nigerian insurance market’s N726.2 billion gross premium last year was impressive, but Zenith Bank’s N945.5 billion gross earnings showed that the business has only scratched the surface.
He explained that the Insurance Meet Tech event brought together visionaries, innovators, and industry leaders to unleash the insurance industry’s potential in Nigeria.