The Managing Director/Chief Executive Officer of Heirs Life Assurance, Niyi Onifade, has emphasized the need for insurers to offer continuous value to policyholders beyond claims payment to achieve the industry's target of increasing penetration to 10% by 2031. Onifade noted that building public trust alone would not be enough to expand insurance adoption. He made this statement in a release titled: “Insurance Must Become Visible First Before It Can Become Universal.”
Onifade commended the National Insurance Commission (NAICOM) for its efforts to strengthen the sector, particularly through the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025). He also welcomed the launch of the Insurance Sector Strengthening Programme (ISSP), which aims to deepen penetration, strengthen institutions, and expand insurance inclusion. The programme targets raising penetration from 0.5% to 10% by 2031.
However, Onifade argued that achieving this target would require addressing what he described as a “value visibility challenge”. Many Nigerians understand the risks associated with medical emergencies, business disruptions, and property damage but often view insurance as relevant only when a loss occurs. As a result, insurers must develop products and services that meet the specific needs of young professionals, small business owners, and families.
Onifade suggested that making insurance a meaningful part of everyday life would require a shift from the traditional claims-driven model to one that delivers continuous value to policyholders. This could include financial wellness support, healthcare services, and other benefits that improve their daily lives. He also emphasized the need for stronger digital engagement, personalized offerings, and collaboration with other industries.
The ISSP focuses on women, young people, and micro, small, and medium enterprises (MSMEs), which Onifade believes is timely. However, he added that expanding access alone would not be sufficient without solutions tailored to the realities and aspirations of these groups. Heirs Insurance Group is exploring innovations, including digital platforms, customer rewards, and artificial intelligence-enabled engagement, to make insurance simpler and more accessible.
Onifade emphasized that technology would play a critical role in the transformation of the insurance industry. He called for collaboration with other industries to connect policyholders to healthcare providers, wellness services, financial advisory support, and other value-adding services. The success of the ISSP should be measured not only by higher penetration rates and stronger balance sheets but also by the industry's ability to improve customers' lives.
Ultimately, Onifade believes that insurers must demonstrate the value of insurance before claims become necessary. By providing everyday value to consumers, insurers can increase adoption and drive penetration to the target of 10% by 2031. The industry's ability to achieve this goal will depend on its ability to adapt to changing consumer needs and provide relevant, accessible, and affordable insurance products and services.
Key points
- Insurers must provide everyday value to policyholders beyond claims payment to achieve the industry's target of increasing penetration to 10% by 2031.
- The Insurance Sector Strengthening Programme (ISSP) aims to deepen penetration, strengthen institutions, and expand insurance inclusion.
- Technology will play a critical role in the transformation of the insurance industry, enabling insurers to provide more accessible and affordable products and services.
