Emma Elekwa
Nigerian Council of Registered Insurance Brokers (NCRIB) has identified exclusion of pensions and micro insurance drivers, lack of technology as well as ignorance as reasons for low insurance penetration in Nigeria.
President, Mrs Ekeoma Ezeibe who raised the concerns on Tuesday at Nnamdi Azikiwe University, Awka, Anambra state during the 2026 Inaugural Annual Insurance Week, regretted that insurance penetration of other countries, including South Africa and Kenya were far higher than that of Nigeria.
According to her, while Nigeria’s insurance penetration is below one percent, that of South Africa is nearly 12 percent whereas Kenya is above 7 percent.
“But to be realistic, looking at South Africa and Kenya vis-a-vis their insurance market, and the drivers of their insurance penetration, you discover they are mostly pensions and micro insurance.
“But in Nigeria, pension which was part of insurance in Nigeria, has been excized with introduction of Pension Reforms Act under National Pension Commission.
“If you check how many trillions that are domiciled from Pension Funds with PenCom, you can imagine what will happen if it is brought into the insurance net in Nigeria.
“This could have shoot up just like that of South Africa and Kenya markets.
“Another driver in other countries are micro insurance. Yes, Nigeria hasn’t paid attention to micro insurance until later.
“As a result, the National Insurance Commission which is our regulator now started licensing micro insurance companies so they can take care of those not financially included in the insurance safety net.
“The micro insurance companies have been licensed to underwrite businesses from the low-income generators like the artisans, farmers, food vendors, petty traders and others.
“When you congregate all these people into the insurance safety net, you can then appreciate that little drops of water can really make a mighty ocean.
Technology adoption
“Another reason for low insurance penetration is because Nigeria has not fully employed technology which is now globally accepted due to its ease of doing business, speed and efficiency characteristics.”
While identifying ignorance as another reason for the insurance low penetration challenge, Ezeibe argued that ignorance does not necessarily stem from poverty, saying even certain rich individuals could largely be ignorant as well.
“You hear people say God is their protector. Yes, God does protect.
“But the same God has given us intelligence for us to apply it towards taking care of ourselves.
“This is why awareness creation on insurance is very important,” she added.
Vice Chancellor, Prof Ugochukwu Anyaehie praised the faculty for attracting stakeholders in the insurance industry, saying the move would further improve growth of the institution.
The VC, represented by Deputy Vice Chancellor, Academics, Prof Alex Asigbo expressed willingness of the University to partner with the organization, including provision of institutional support.
Earlier, Programme Coordinator, Insurance Programme, Department of Banking and Finance, Faculty of Management Sciences, Prof Victor Okonkwo described the theme: “Insurance for All: Driving Inclusion, Innovation, and Trust” as both a timely reflection of market demands and an urgent blueprint for national development.
“Our theme for this week is also entirely synchronized with our insurance programme vision: to advance knowledge-driven, trust-based and technology-enabled risk management solutions that enhance financial security and sustainable economic development across Nigeria and the continent,” he added.
