…Nigerian insurers urged to leverage fintechs, telecoms, AI for growth
By David Akinmola
The 52nd African Insurance Organisation (AIO) Conference and Annual General Assembly in Cairo, Egypt has challenged Nigerian insurers to tap Africa’s 500 million mobile subscribers and accelerate digital adoption to drive insurance penetration and premium growth.
Industry experts said the conference provided a clear roadmap for insurers seeking growth in a market long constrained by weak penetration, noting that the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 has created a regulatory environment capable of supporting rapid expansion.
The call comes as the Commissioner for Insurance, Olusegun Omosehin, declared at the conference that Africa’s low insurance penetration should be viewed as a multi-billion-dollar growth opportunity rather than a market weakness, citing the continent’s existing premium pool of about $68 billion.
Insurance executives who attended the conference argued that the biggest challenge facing operators is no longer product availability but distribution, warning that conventional agency networks continue to leave millions of potential customers outside the insurance ecosystem.
According to industry extimates discussed at the conference, Africa’s digital economy now includes more than 500 million mobile wallet users, offering insurers a ready-made platform to distribute retail insurance products without the heavy costs associated with physical branch expansion.
Experts urged Nigerian insurers to accelerate partnerships with telecommunications companies, fintech firms and digital payment providers to deliver insurance products through mobile applications, Unstructured Supplementary Service Data (USSD) channels and embedded financial services.
The Director-General of the Nigerian Insurers Association, Bola Odukale, said the Cairo conference reinforced the need for operators to rethink traditional distribution models and embrace technology-enabled channels capable of reaching millions of Nigerians currently excluded from insurance services.
According to her, the industry can no longer depend solely on conventional agency networks if it hopes to achieve meaningful penetration growth.
“The opportunities are enormous. What the Cairo conference has shown is that insurance penetration can improve significantly when operators leverage existing digital infrastructure and focus on solving customers’ real-life risks through accessible products,” she said.
Industry stakeholders noted that integrating insurance into everyday transactions such as ride-hailing services, e-commerce purchases, agricultural input financing, salary platforms and cooperative socirty contributions could significantly increase premium generation while expanding financial inclusion.
“The challenge is not that people are unwilling to pay for insurance. The challenge is our ability to create products and distribution systems that reach customers where they live and work,” Omosehin said during discussions at the conference.
The Cairo meeting also highlighted technology adoption as one of the fastest routes to operational efficiency.
Participants encouraged insurers to leverage Artificial Intelligence, machine learning and blockchain-based solutions to automate underwriting processes, improve fraud detection and accelerate claims settlement.
Supporting this position, President/Chairman of Council of the Chartered Insurance Institute of Nigeria, Yetunde Ilori, and innovation must be matched with capacity development and professional competence.
She noted that the increasing deployment ao all and digital platforms across the insurance value chain requires continuous training to ensure ethical standards, customer protection and sustainable growth.
“The future of insurance will be driven by technology, but technology, but technology must be managed by competent professionals.
The industry must invest in developing the skills needed to navigate this new environment while maintaining public conference,” she stated.
For Nigerian operators, industry players said NAICOM’s ongoing transition to principles-based supervision and risk-based capital requirements provides an opportunity to test innovative products through regulatory sandbox initiatives while maintaining prudent risk management standard.
“We have millions of Nigerians who interact daily with digital financial services but have never purchased and insurance policy. That gap presents a major opportunity for operators willing to rethink their business models,”she said.
For many stakeholders, the challenge now shifts from conference resolutions to implementation, as insurers seek to convert Africa’s vast uninsured population into sustainable premium growth and long-term industry relevance .
