Lagos: Experts in the Nigerian insurance industry have urged practitioners to embrace technology and innovate products as a means to deepen market penetration and build consumer trust. This call to action was made during a panel discussion at the Insurance Meets Tech (IMT) 4.0 and Insurance Redefine Summit held in Lagos.
According to News Agency of Nigeria, the summit, an annual event now in its fourth edition, focused on the theme ‘Innovating for the New Trybe’ for the year 2025. Mr Olusegun Omosehin, the Chief Executive Officer of the National Insurance Commission (NAICOM), emphasized the industry’s progress through partnerships and embedded insurance but highlighted the need for evolution beyond traditional offerings to cater to the younger, tech-savvy demographic. Omosehin stressed the importance of digitization in streamlining the claims process to enhance customer satisfaction and retention.
Mr Kunle Ahmed, the 26th Chairman of the Nigeria Insurers Association (NIA), raised concerns about the sustainability of the existing five per cent premium rate for motor insurance, suggesting a shift towards dynamic pricing models based on driver behavior and claims history. He advocated for a departure from the one-size-fits-all approach, which technology could facilitate for more equitable risk pricing.
Another panelist, Prince Babatunde Oguntade, noted that some companies have already started offering remote car inspections, reducing the need for physical office visits. This innovation marks a step forward in improving customer experience and fostering trust. Mrs Yetunde Ilori, the 52nd President of the Chartered Institute of Insurers of Nigeria, discussed the untapped potential of consumer and gadget insurance, advocating for tailored products and enhanced accessibility at the point of purchase through partnerships with retailers.
The speakers collectively urged industry players, particularly brokers, to lead in innovation and ensure seamless claims processing to drive repeat business and enhance the industry’s reputation. Odion Aleobua, the Convener of IMT, called for a paradigm shift by prioritizing youth engagement and technology adoption to unlock the sector’s growth potential, noting Nigeria’s insurance penetration rate of less than one per cent compared to South Africa’s 10 to 12 per cent.
Aleobua emphasized the importance of connecting with Nigeria’s predominantly millennial and Gen Z population, who represent the future market, and leveraging the country’s significant digital infrastructure, with approximately 140 million mobile phone users, for insurance services. The strong attendance of top industry executives at the summit underscored its growing influence as a hub for innovation and growth.
Bode Pedro, Founder and CEO of Casava, expressed enthusiasm about partnering with IMT as the official insurer, highlighting digital micro-insurance’s role in empowering individuals and businesses while aligning with NAICOM’s mission to expand insurance access across Nigeria. Per Lagerstrom, Insurtech Innovator and Founder of BehaviorTech, in his keynote presentation, showcased how agile, technology-driven solutions could revolutionize insurance and financial inclusion across Africa.
The forum concluded with a collective call for the Nigerian Insurance Commission (NAICOM) and other regulatory bodies to foster an enabling environment that encourages innovation and reduces entry barriers for new, technology-driven solutions.