Top players in the insurance ecosystem are targeting to unlock the opportunities in the retail space to drive growth of the industry and beat economic headwinds.
This is even as analysts have posited that the retail business holds the key to growth and development of the insurance market given the country’s population of over 200 million, is still untapped with the sector’s penetration to gross domestic product (GDP) standing at 0.4 percent.
Emmanuel Aryee Mokobi, CEO, Africa, Prudential, said the company’s interest in the Nigerian market and reason for its expansion are tied to the potential it has seen in the country’s insurance retail space.
He said Nigeria is the largest economy in Africa, with a GDP of $477 billion as at 2022 and a population of 218 million people. Its population is fast growing and is expected to increase to over 370 million by 2050, by which time Nigeria is expected to be the third most populous country in the world (currently 6th).
Mokobi noted that its recent agreement to acquire remaining shares in Prudential Zenith Life justifies its conviction that Nigeria is an attractive market with significant growth potential, particularly in retail.
According to him, insurance penetration remains low in Nigeria (less than 0.2 percent of GDP) and there is a significant growth runway. “Nigeria’s life insurance market is the fifth largest in the African market with a gross written premium of $770 million, and we have an established presence there.”
“We are expanding our agency network through partnership, which has been our success strategy in major markets like Ghana, Uganda and even Zambia,” he said.
Stephen Alangbo, managing director, Cornerstone Insurance Plc, said the company pays a lot of attention to retail business, which is in line with the huge investments it is making in technology.
He said the company ensures that it has the products that meet the needs of the customers, and at the same time increasing distribution channels to take insurance to every home.
“We want to use technology to identify the needs of our potential customers. We want to use technology to design products for them and we want to use technology to improve our processes, respond to the claims when risk crystallises.”
Moruf Apampa, managing director/CEO, NSIA Insurance Limited, speaking on the company’s appetite for retail said, “When I came into the market less than two years ago, we made a commitment that for us, our intention is to ensure that we bring NSIA Insurance products to every household in Nigeria. Are we there? I tell you ‘no.’ Can we do it? I tell you ‘yes.’”
Apampa said the challenges in the environment are normal day to day life issues and they are also expected.
“What is important is how prepared you are for those challenges.”
According to him, Nigeria has over 200 million, meaning that the potential is in retail as the corporate side of the business has long been saturated.
“We need to sell needs, we need to sell what the market requires and so as an institution, we are problem solvers. We first identify the problem, devise solutions to address those needs.”
Olusegun Omosehin, commissioner for Insurance/CEO National Insurance Commission (NAICOM), said part of his engagement series with stakeholders on how to advance the growth of insurance in Nigeria underscores the importance of retail.
Omosehin emphasised his commitment to fostering a robust and stable insurance industry that prioritises the protection of policyholders and beneficiaries.
He further outlined his administration’s agenda, focusing on increasing insurance penetration and ensuring efficient and prompt claims settlements.
