By David Akinmola
Underwriting firms in the nation’s insurance industry are recording up to a 40 per cent increase in policy renewals, targeting growing investment in customer loyalty awareness campaigns in the country.
As competition intensifies and trust remains a major issue in the sector, underwriters are shifting their focus from chasing new customers to building stronger relationships with existing ones through rewards, personalised services, and consistent engagement.
The shift is proving effective, with many firms now seeing loyalty not as an add-on but as a core strategy for long-term growth and customer retention.
In the past, loyalty programmes were not a big part of insurance companies’ strategies. But now, insurers and regular engagement.
Nigeria’s insurance sector has long struggled with keeping customers due to issues like slow claims processing, poor customer service, and low trust. But that is changing. “Loyalty is now a core part of business,” said the Executive Secretary/Chief Executive Officer of the Nigerian Council of Registered Insurance Brokers (NCRIB), Tope Daramola, during an industry event themed: ‘Insurance for All: Securing Nigeria’s Future. “Companies that focus on it are seeing more customers renew their policies and are happier with their services.”
The COVID-19 pandemic was a turning point. During that time, some insurers offered flexible payment options, faster claims, and health support. These efforts helped build trust and set the stage for a long-term loyalty programme.
Since then, firms like AllCO Insurance, AXA Mansard Insurance, and Leadway Assurance have rolled out new loyalty benefits. These include cashback for customers who don’t make claims, rewards for reaching certain milestones, and discounts from partner businesses.
According to the Nigerian Insurers Association (NIA), companies that introduced proper loyalty programmes have seen policy renewals go up by as much as 40 per cent in the past three years.
This shows that focusing on customer relationships can bring real results.
“Loyalty, building trust and long-term business success,” said Adebiyi Ogunlalu, who leads customer experience at a major insurer. “It also helps strengthen the brand’s image in a market where trust is still growing.”
Technology is helping insurance run loyalty campaigns more effectively. Many now use apps and online platforms to track customer behavior, offer instant renewals, and personalize their services.
This gives customers a better experience, making them more likely to stick with the company and recommend it to other potential customers.
With more digital competition and changing customer needs, loyalty programmes are becoming a powerful way for insurers to stand out. They not only boost renewals but also help reach people who haven’t used insurance before.
As regulators push for more financial inclusion and insurance awareness, loyalty campaigns could play a key role in attracting and keeping new customers, especially those in underserved communities across the country.
In today’s market, loyalty campaigns aren’t just a nice addition; they are a must. Companies that invest in building long-term relationships are the ones likely to lead the next wave of growth in Nigeria’s insurance industry.
In today’s market, loyalty campaigns aren’t just a nice addition; they’re a must. Companies that invest in building long-term relationships are the ones likely to lead the next wave of growth in Nigeria’s insurance industry.
