Insurance penetration in Nigeria remains below one percent of the country's Gross Domestic Product (GDP), despite the nation's population of more than 220 million. This low penetration rate is a challenge for the insurance industry, which is seeking to change how Nigerians perceive insurance. According to Kunle Ahmed, Chief Executive Officer of AXA Mansard Insurance, the industry needs to make Nigerians understand insurance as more than an expense.
Ahmed stated that Nigerians should see insurance as a practical expression of care for families, businesses, and communities. He noted that protection does not begin with an insurance policy, but rather with people. Parents who purchase health insurance for their children, businesses that protect their employees, and families that prepare against uncertainty are all demonstrating care. This approach is aimed at repositioning insurance as a vital part of financial planning.
The insurance industry in Nigeria is entering an important phase following the passage of the Nigerian Insurance Industry Reform Act (NIRRA) 2025, the recapitalisation of insurance companies, and other reforms in the sector. Ahmed emphasized that the recapitalisation exercise should go beyond increasing the capital base of insurance companies to building stronger institutions capable of underwriting larger risks, settling claims faster, investing in innovation, and supporting economic activities.
A stronger insurance sector could help de-risk activities in agriculture, manufacturing, infrastructure, and digital services, while supporting investment and long-term savings. Ahmed noted that the industry needs to connect insurance with values that Nigerians already understand and practice in their daily lives. The challenge, he said, is helping Nigerians see insurance not as an expense, but as a practical expression of care.
AXA Mansard Insurance has launched a "Culture of Care" campaign aimed at promoting a new understanding of insurance. The Chief Marketing Officer of AXA Mansard, Adebola Surakat, said the campaign was built around the question: "Who takes care of the caregiver?" The campaign seeks to move beyond the conventional understanding of insurance by presenting protection in a more human form and encouraging Nigerians to value and protect those who care for others.
The healthcare sector is a critical component of the "Culture of Care" campaign. Tope Adeniyi, Chief Executive Officer of AXA Mansard Health, noted that illness can expose families to significant financial pressure when they lack adequate protection. He said the company is promoting preventive and curative healthcare while also seeking to ensure that caregivers receive support. AXA Mansard's healthcare initiatives, including AXA One Health, aim to provide end-to-end care and make healthcare more accessible.
Financial security is another important aspect of protection. Tunde-Anjo, Chief Executive Officer of AXA Mansard Investments, said saving and investing for the future should be seen as an act of care, particularly for Nigerians who make financial sacrifices to provide education, healthcare, shelter, and other necessities for their families. He noted that financial planning can help families build resilience against unexpected challenges and create opportunities for future generations.
Key points
- Insurance penetration in Nigeria remains below 1% of GDP.
- The industry is seeking to change how Nigerians perceive insurance.
- A stronger insurance sector could support investment and long-term savings.
