Stakeholders in the Nigerian insurance and financial technology (Fintech) subsector of the economy say the future of insurance is dependent on how players collaborate with fintechs and adapt their product offerings to meet customers’ demands.
“With over 230 million people in Nigeria and a penetration still below 1 percent of GDP, the gap to be filled is huge. The future of insurance will be defined by how well we adapt, collaborate with fintechs, and deploy platforms that truly meet customer lifestyles,” Nelson Akerele, managing director, Enterprise Life Assurance Nigeria, stated during the Insurance Meets Tech 4.0 conference, held in Lagos recently.
Speaking during a panel session themed, ‘Innovating for Disruption: Building Systems and Ethos,’ Akerele called on players in the Nigerian insurance industry to embrace digital transformation or risk extinction. He also urged players in the sector to evolve, acquire new skills, and adapt to the disruptions shaping the future of insurance.
“In insurance, we need a complete mindset shift. Incremental improvements are not enough; we must embrace disruptive thinking. If we do not evolve, we will face extinction. But if we innovate boldly, the opportunities before us are enormous,” he stated.
Nelson drew parallels between the insurance sector and other industries that have been radically reshaped by technology, such as manufacturing, healthcare, and hospitality. He noted how robotics and AI have transformed manufacturing by boosting efficiency, and how medical professionals now rely on AI-powered diagnostic tools for precision and speed.
“Innovation has come to stay. The disruptions we are witnessing are not threats; they are opportunities. They allow us to learn new skills, embrace AI-driven tools, and deliver services that are faster, smarter, and more delightful for customers,” Akerele stated.
According to him, regulators through the Nigerian Insurance Industry Reform Act (NIIRA), have already sent the right signals that digitalisation is not optional, and that businesses must scale going forward.
Highlighting Enterprise Life’s own digital-first model, Akerele explained that the company’s processes were built to be technology-driven from inception, making efficiency and customer experience central to its operations.
Ekerete Ola Gam-Ikon, deputy commissioner for Insurance, stated that innovation must be defined in terms of customer experience, rather than technology alone. He argued that the industry’s biggest challenge lies in what customers actually encounter when they interact with insurers.
“Whether you call it innovation or DNA, what will really shake the foundations of our industry is experience. What are customers experiencing today? We sit in our offices, design products we believe customers need, yet their awareness remains low. And for those who have taken the bold step to buy insurance, their experiences have often been disappointing.”
According to him, innovation must be about changing users’ experience, especially doing things differently or improving on what already exists, in ways that restore trust and delight the customer.
