By David Akinmola
Efforts to deepen insurance penetration through digital innovation received a boost yesterday as industry stakeholders projected that the National Insurance Commission (NAICOM) Insurtech initiative could expand insurance access to over 200 million Nigerians by 2030.
The projection followed the issuance of Nigeria’s first Partnering Insurtech licence to CBI Partnering Insurtech Limited under NAICOM revised regulatory framework for technology-driven insurance services, a development seen as a major step towards modernizing insurance distribution and improving financial inclusion.
Speaking in Lagos, the founder and Executive Vice Chairman of Baywood Group, Emperor Chris Baywood Ibe, said the initiative could replicate the success of fintech in the banking sector by dismantling barriers that have constrained insurance adoption for decades.
Nigeria remains one of the least insured countries in Africa, with insurance penetration estimated at less than one per cent despite a population exceeding 200 million. Industry operators have long identified low awareness, limited access to products and weak confidence in claims settlement as major challenge to growth.
Ibe said technology would play a critical role in addressing these challenges by simplifying policy purchases, improving claims administration and extending insurance services to underserved communities.
According to him, the emergence of licensed Insurtech operators could mark a turning point for the industry as digital platform make insurance more accessible and affordable to million Nigerians.
“The true test of insurance is not when a policy is purchased. The true test when a claim is made. People trust insurance when claims are processed quickly, transparently and seamlessly,” he said.
The development comes as operators seek new growth drivers amid renewed regulatory efforts to improve market penetration and increase insurance contribution to the economy.
Under the new framework, Partnering Insurtech firms are expected to function as technology enablers and digital marketplaces connecting consumers with licensed insurers. They are not permitted to underwrite risks or settle claims but can facilitate policy discovery, purchase, administration and claims initiation through digital channels.
CBI Partnering Insurtech said it would collaborate with insures, brokers, Health Maintenance Organisation (HMO), fintech companies and software developers to build a broader insurance ecosystem capable of reaching retail customers and underserved segments.
The company plans to deploy mobile applications, USSD channels, cloud-based infrastructure and artificial intelligence-driven customer engagement tools to support insurance distribution and claims management.
Also speaking on the development, the President of the Chartered Insurance Institute of Nigeria (CIIN), Yetunde Ilori, said digital innovation offers one of the most effective pathways for expanding insurance coverage in a market where traditional distribution channels have struggled to reach the informal sector.
She noted that technology could help reduce operating costs, improve customer experience and support the development of products tailored to low-income earners and small businesses.
For industry observers, the latest regulatory move signals a shift towards a technology-led insurance ecosystem, with digital platforms expected to play a central role in improving access, transparency and service delivery.
As competition intensifies and operators seek new avenues for growth, stakeholders believe the success of Insurtech could determine how quickly the industry closes the protecting gap and extends insurance coverage to millions of Nigerians currently outside the formal risk management system.
