From a strategic standpoint, how important are insurance brokers within Nigeria’s financial services ecosystem?
Insurance brokers play a critical but often understated role within Nigeria’s financial services ecosystem. Beyond their traditional function as intermediaries, brokers serve as risk advisors, helping businesses understand exposures, structure appropriate insurance programmes, and protect their balance sheets against disruption. In a volatile operating environment characterised by economic uncertainty, regulatory change, and operational risk, this advisory role has become increasingly important.
Brokers sit at the intersection of insurers, regulators, and policyholders. They translate complex risk considerations into practical insurance solutions that align with business realities. When done properly, this supports capital preservation, business continuity, and long-term sustainability. In that sense, insurance brokerage contributes not only to individual firms but also to the stability and credibility of the wider financial system.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has been described as a turning point for the sector. What makes it significant?
NIIRA 2025 is significant because it strengthens the structural foundations of the insurance industry. The Act raises standards around governance, capital adequacy, and risk-based supervision, moving the sector away from a purely compliance-driven mindset. This improves market discipline and enhances confidence among policyholders, investors, and regulators.
For insurance entities, the implications are far-reaching. The Act raises expectations around professionalism, technical competence, and transparency. Brokers are now required to demonstrate a clearer understanding of risk and provide stronger justification for coverage structures. Over time, this shift will help deepen insurance penetration by improving trust and reinforcing the role of insurance as a credible risk management tool.
How does technology fit into this more disciplined regulatory environment?
Technology plays an enabling role by improving efficiency, access, and data visibility across insurance operations. Digital tools help reduce friction in onboarding, policy administration, and service delivery, which is particularly important in markets where operational inefficiencies increase costs and limit access.
At First Insurance Brokers, technology is deployed to support advisory effectiveness rather than replace professional judgment. Our digital insurance solution, First Cover, is designed to simplify access and improve service efficiency while maintaining strong oversight and risk assessment. Technology adds the most value when it complements human expertise. Insurance failures often occur when automation outpaces understanding, so sustainable innovation lies in balancing digital efficiency with sound judgment.
What differentiates First Insurance Brokers’ advisory capability in practice?
Experience and institutional knowledge are critical differentiators. With over 25 years of continuous presence in the Nigerian insurance industry, First Insurance Brokers has developed a deep understanding of how risks materialise in practice. This includes how claims are negotiated, where policy structures tend to break down, and how operational realities affect outcomes.
This experience allows us to design insurance programmes that respond to real business risks rather than theoretical exposures. The true value of insurance is not tested at placement but at claims, where structure, documentation, and execution determine results. Our advisory approach is therefore focused on protecting client balance sheets and ensuring resilience when adverse events occur.
How does your affiliation with the First HoldCo Group influence your strategic outlook?
Being part of the First HoldCo Group embeds a strong culture of governance, prudence, and long-term thinking into our operations. The Group’s heritage shapes how we approach risk, client relationships, and growth decisions. It reinforces the importance of accountability and sustainable value creation.
For clients, this affiliation provides additional confidence that their insurance broker operates within a framework of institutional discipline. It supports our positioning as a long-term advisory partner rather than a transactional intermediary focused solely on volume.
In the current economic climate, how should businesses think about insurance and risk management?
Businesses should view insurance as a strategic financial tool rather than a regulatory expense. Economic pressure increases exposure to shocks such as operational disruptions, supply chain challenges, and regulatory changes. Effective risk management helps preserve capital, stabilise earnings, and protect long-term value.
A well-structured insurance programme allows businesses to transfer risk deliberately and cost-effectively. Brokers play a key role in helping organisations make informed trade-offs between coverage, cost, and risk retention, ensuring that insurance spend delivers meaningful protection rather than symbolic compliance.
Looking ahead, how do you see the role of insurance brokers evolving in Nigeria?
The future of insurance brokerage in Nigeria will be advisory led. As regulation strengthens and clients become more sophisticated, brokers will be evaluated less by the volume of premiums placed and more by the value they help preserve. Expertise, governance, and execution capability will increasingly define market leadership.
Brokers that invest in talent, ethical standards, and technology, while maintaining strong advisory discipline will play a central role in strengthening Nigeria’s financial resilience. In this evolving landscape, insurance brokerage will continue to move from being perceived as an intermediary function to being recognised as an essential pillar of financial risk management.
