Nigerian Insurers Aim for 10% GDP Penetration by 2031

The Nigerian insurance industry is grappling with low customer uptake, attributed to factors such as low public awareness, weak consumer trust, and fragmented distribution channels. The National Insurance Commission launched the Insurance Sector Strengthening Programme in September 2026, aiming to boost insurance penetration from approximately 0.5% of GDP to 10% by 2031.

Experts indicate that insurers must enhance their service delivery and make insurance relevant and affordable for households and small businesses. A key lesson from global markets is that claims settlement should be a priority in customer acquisition.

MSIG Insurance in Singapore achieved a 94% claims settlement ratio and settled 92% of fast-track claims within three days. Research by Sollers Consulting and Ipsos shows that fast claims settlement is a top priority for 52% to 63% of customers.

Mrs Ebelechukwu Nwachukwu, Chairman of the Nigerian Insurers Association, emphasized the need for tangible improvements in service delivery and innovation beyond mere recapitalization.