Transforming Nigeria’s Insurance Sector: Experts Push for Policy Overhaul in 2025 ✨

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Olori Uwem

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Mar 18, 2024
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Transforming Nigeria’s Insurance Sector: Experts Push for Policy Overhaul in 2025 ✨

Detailed Breakdown of the News:

The Call for Policy Reforms ️

At the 2024 Business Journal Annual Lecture, industry stakeholders emphasized the urgent need for policy reforms to revamp Nigeria’s struggling insurance sector. The event focused on the theme: ‘Repositioning the Insurance Industry to Drive Sustainable Insurance Growth in Nigeria’.

Key Issues Addressed:

1. Low Insurance Patronage
• Kunle Ahmed, Chairman of the Nigerian Insurers Association (NIA), highlighted persistent low patronage as a major challenge.
• He advocated for compulsory insurance policies, noting that legal backing could change public perceptions and increase participation.

2. Legislative Action Underway ⚖️
• Ahmed revealed that the National Assembly is working on reforms to modernize outdated insurance laws, making them more relevant and compulsory.

3. Need for Structural Changes ️
• Tope Smart, Group Chairman of NEM Insurance Plc, emphasized that Nigeria significantly lags behind other countries in insurance penetration.
• Key challenges include:
• Lack of consumer trust.
• Low public awareness of insurance benefits.
• Economic constraints due to widespread poverty.
4. The Reality of Poverty
• Adetola Adegbayi, CEO of Mutual Specialists, underscored the need to confront the country’s poverty levels, which limit the average citizen’s ability to invest in insurance.

Why This Matters:

• Insurance is a vital driver of economic growth. Reforms aimed at expanding the industry will:
• Build trust among consumers.
• Increase financial security for individuals and businesses.
• Contribute to sustainable national development.

Looking Ahead to 2025

• Stakeholders are optimistic that government policies and industry efforts will bridge gaps, improve transparency, and encourage widespread adoption of insurance solutions.

Your Thoughts?
What steps do you think can boost consumer trust in insurance? Let’s discuss!