NAICOM moves to boost insurance penetration in Nigeria

By Esther Agbo

The National Insurance Commission (NAICOM) has unveiled plans to increase the number of insurance agents in Nigeria to boost insurance penetration, which in 2022 industry survey by Augusto and Co, stands at less than 1 percent, one of the lowest in Africa.

According to NAICOM’s National Commissioner for Insurance, Olusegun Omosehin, during his recent visit to the executives of the Association of Registered Insurance Agents in Lagos, the commission aims to increase the number of agents from 50,000 to 300,000 by 2025 and eventually to three million.

This move is expected to drive growth in the insurance sector, following the example of successful insurance markets worldwide.

However, despite the low penetration, the industry saw a significant growth of 27 percent in gross premiums in Q4 2023, reaching N1 Trillion. NAICOM attributes this growth to the critical role of agents in driving insurance growth.

Omosehin emphasised the need for agents to act as catalysts for growth, stating, “In nations across the globe where insurance is thriving, agents act as catalysts, driving the growth. Similar steps need to be taken to grow insurance in Nigeria.”

The National President of the Association of Registered Insurance Agents of Nigeria (ARIAN), Olakunle Odewunmi, commended NAICOM for recognising the role of agents in the insurance value chain and urged the commission to address some of the challenges facing agents, which includes but not limited to licensing issues.

Reacting, Omosehin pledged to urgently address the challenges on or before the end of next month and as well set a new tone for the industry to contribute to Nigeria’s economic growth, aiming to achieve a $1 trillion economy as projected by President Bola Tinubu.

This development is however seen as a positive step towards deepening insurance penetration in Nigeria and positioning the industry to play a pivotal role in achieving the country’s economic goals.