The National Insurance Commission (NAICOM) has brought to light a concerning statistic: a mere three percent of Nigerians are currently insured, leaving a staggering 97 percent of the population without coverage due to lack of awareness or understanding of the benefits.
During a journalists’ seminar in Uyo, Akwa Ibom State, themed “Insurance sector and the Nigerian Economy: Impact, Challenges and the new Frontiers,” Dr. Usman Jankara, Assistant Director of Corporate Strategy and Special Duties at NAICOM, highlighted the critical issue. He stated that only three million Nigerians are insured at present.
Jankara emphasized that although there has been significant growth in the industry, with gross premium income rising from N282 billion in 2015 to N736 billion today, there is still room for improvement. Nevertheless, he pointed out that this growth is commendable, as no economy has experienced a consistent 15 percent growth over a 10-year period in any of its sub-sectors.
The figures suggest a positive trend, with assets growing from N917 billion in 2015 to N2.32 trillion in 2022, constituting an impressive 60 percent increase. However, the insurance penetration rate, which measures insurance to Gross Domestic Product (GDP), stands at a meager 0.4 percent. Likewise, the insurance density, reflecting the percentage of Nigerians who are insured, rests at 1.5 percent.
Jankara further shared encouraging data on the growth of life insurance, which surged from N86 billion in 2015 to N309.1 billion in 2022. Non-life insurance also witnessed substantial progress, increasing from N198.3 billion in 2015 to N417.3 billion in 2022.
In his opening remarks, Mr. Sunday Thomas, CEO of NAICOM, emphasized the commission’s commitment to intensifying insurance sensitization efforts to achieve wider penetration across Nigeria.
As the country grapples with the challenge of low insurance coverage among its citizens, the need for comprehensive awareness campaigns and educational programs becomes even more urgent. With a population estimated at 200 million, it is crucial to address the prevailing lack of understanding and falsely perceived barriers to insurance. Increased insurance coverage has the potential to bring significant socio-economic benefits to Nigeria while providing individuals and businesses with the financial security they deserve.
MTO/SUN
