By Bakare Ogunleye
The Nigerian Council of Registered Insurance Brokers (NCRIB) has raised fresh concerns over the country’s low insurance penetration, revealing that over 70 percent of Nigerians remain uninsured despite growing economic risks and vulnerabilities.
Speaking at a recent industry forum in Lagos, NCRIB President, Babatunde Oguntade, attributed the alarming figure to a combination of public mistrust, poor awareness, low disposable income, and limited access to affordable insurance products.
“It is worrisome that in a country of over 200 million people, less than 30 percent are covered by any form of insurance,” Oguntade stated. “This level of exclusion poses a significant threat to both individual financial stability and national economic resilience, especially in times of crisis.”
He noted that many Nigerians still perceive insurance as a luxury or something reserved for the elite, adding that cultural attitudes and religious beliefs also play a role in discouraging uptake. Additionally, the prevalence of informal employment, where most workers earn daily wages, makes it difficult for individuals to commit to periodic premium payments.
“People want to protect themselves, their homes, and their businesses,” Oguntade said, “but the industry must do more to simplify products, improve distribution, and regain public trust through transparency and timely claims settlement.”
The NCRIB called on underwriters and brokers to intensify grassroots education campaigns and collaborate more closely with digital platforms to reach underserved populations, particularly in rural areas.
Oguntade also urged the government to enforce existing insurance laws, especially in compulsory sectors like motor insurance, building construction, and public liability coverage, to boost compliance and broaden the insurance base.
Analysts say improved insurance uptake could enhance economic resilience, reduce poverty, and reduce the financial burden on families during emergencies such as accidents, fires, floods, and health crises.
As Nigeria continues to battle inflation, currency instability, and rising insecurity, stakeholders agree that insurance must be repositioned as an essential tool for financial protection—not a luxury.
