In this piece, JOSEPH INOKOTONG writes that innovation through the use of technology will continue to shape the landscape of the insurance industry in Nigeria.

There are potential ways in which innovation can enhance the growth of the insurance industry in Nigeria. First, is the need for insurers to use digital technologies such as Artificial Intelligence, big data and cloud computing to make their operations more efficient.

This could lead to lower costs and better customer service, which could attract more customers and boost growth. Also, insurers can use new products and services such as micro-insurance and Takaful (Islamic insurance) to reach new markets and tap into new sources of revenue.

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Indeed, it is exciting to know how technology is changing the insurance landscape in Nigeria. However, the government can support innovation in the insurance sector through more policies and incentives to encourage the use of new technologies and products.

There are a few areas where this could be especially helpful. The government can create a regulatory framework that encourages the use of new technologies, such as introducing regulations that promote the use of data analytics or simplifying the process of obtaining approval for new products. Secondly, the government could provide financial support for insurance companies to develop new products and technologies. These policies could help to boost the insurance industry.

It is also important to consider the role of customers in driving innovation. Insurance companies can work with customers to create more innovative products and services by focusing more on customer experience and feedback. In addition to focusing on customer experience and feedback, there are a few other ways insurance companies can work with customers to drive innovation. For example, they could make it easier for customers to purchase and manage their policies online and they could create more personalised products and services that meet the specific needs of different customer segments.

The insurance industry has a lot of potential for growth in Nigeria and industry watchers are excited to see how it develops in the coming years. In five years, experts say the insurance sector in the country will be shaped by a few key trends.

One of them is the use of technology, which will continue to grow and more companies will be using Artificial Intelligence, big data and cloud computing to improve their operations. Also, there would be more micro-insurance products designed to meet the needs of low-income customers and more companies would use mobile technology to reach new customers and provide new services.

However, it is pertinent to remember that these trends will not happen in a vacuum; they will be influenced by broader social and economic changes in Nigeria. For instance, the country’s population is expected to grow significantly over the next few years and this will create new opportunities for the insurance industry.

Nigeria’s demographic trends will most likely have a big impact on insurance. There are a few ways in which demographic trends will impact the insurance industry in the country. One is the growing population, which will create a larger market for insurance products and which could lead to increased competition and innovation in the sector. Secondly, the population is becoming increasingly urbanised; this could lead to new opportunities for micro-insurance products that are specifically designed for urban areas. Again, the population is becoming more educated and more connected to the internet, which could create opportunities for new ways of distributing and managing insurance products.

Another aspect of demographic trends that may be really important for the insurance industry is the aging population. As the population gets older, there will be an increased demand for products like long-term care insurance and annuities.


It is not certain if insurance companies in Nigeria are prepared for this shift, but it could be a mixed picture. Some insurance companies are already starting to develop products and services for the aging population, but others are lagging behind. It is a huge opportunity for the industry, but it will require companies to adapt their business models and find new ways to reach this demographic.

There is a lot of potential for growth in this sector and stakeholders are excited to see how it evolves in the future.

In recognition of this, experts in the nation’s financial service sector have called for insurance and pension operators to adopt more creative and innovative ways in their business approach, product development and service delivery to grow the sectors. They gave their submissions at the eighth annual national conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), with the theme, ‘Role of Insurance and Pension in Building Sustainable Economic Growth under the New Government.’

They stressed the need for operators to embrace continued manpower development and adopt technology as a panacea for driving growth in modern-day businesses. The experts also urged the government at all levels to provide an enabling environment, supported by relevant regulation that is business-friendly and growth-driven.

In his contribution, the Managing Director/Chief Executive Officer, Scib Insurance Brokers, Mr Shola Tinubu, harped on the need for the government to adopt creative policies and regulations that are business-friendly and growth-driven for the sectors. He advised the regulators to give operators a free hand to choose their own ways of raising capital.

“On the insurance side, capital had been driven by statutory requirements. We are talking about the regulator mandating the players to get a certain quantum of capital without creating ground for that capital. Meaning that companies have to strive for capital just to stay in business and what has happened in the various rounds that we had was that there was no creative idea for channelling the capital,” Tinubu said.

He averred that if any company decides on its own to embrace the capital market to raise funds, such a firm will channel the capital effectively for the growth of the business, noting that the industry needs a situation where operators will initiate capital level adequacy and use it to follow up investment ideas. He recognised the need for investment managers who can digest investment ideas and understand the kind of things they need. He reckoned that operators do not need capital for the sake of raising it, but for investment opportunities that will yield higher returns.

The Managing Director, ARM Pension, Mr Wale Odutola, who was represented by Mrs Abimbola Suleiman, ED, Investment, ARM Pension, said every household has a need for basic insurance and a basic pension plan, noting that insurance and pension have gone a long way in improving the lives of people.

Odutola explained that the government alone cannot engender sustainable economic growth, as such, insurance and pension should be encouraged among the rural dwellers to better their lots. “When insurance handles the risks for businesses and the Contributory Pension Scheme (CPS) takes care of pension liabilities from the balance sheet of the companies, this will go a long way to ensure productivity and growth in the nation’s finance sector.

“There are currently nine million people in the CPS net and this is abysmally low when compared to the nation’s population. Hence, there is a need to get all state governments involved and the participation of the informal sector in CPS,” Odutola said. He noted that deepening the scope of participation requires innovations and creativity from operators in both sectors.

Ms. Prisca Soares, former Secretary General of the African Insurance Organisation (AIO), said the lack of skilled manpower, especially the dearth of actuaries, is presently challenging the insurance industry. She said that the industry needs to make a deliberate attempt to develop its manpower and solve the major challenge of financial reporting. She explained that investment in technology needed for actuaries had been a challenge over the years, but has now become more critical. “When you do risk-based capital you need actuaries to get it right. The insurance industry needs conscious efforts to address this because it is critical to their business,” she stated.

Similarly, Mr Oguche Aguda, Chief Executive Officer of the Pension Operator Association of Nigeria (PenOp), represented by Mr Akinbola Akintola, Head of the Research Department at PenOp, said the insurance and pension sectors are facing the same challenge of public confidence.

The experts, after a thorough deliberation, were unanimous in arriving at an unassailable fact that innovation could enhance the growth of the insurance industry in Nigeria, a country with great potential.



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