Insurance firms are tapping technology and innovation to drive the growth of their sector.
At the 2025 edition of the BusinessDay Insurance Conference, themed ‘Resilience and Growth in Uncertainty: Charting the Path for Nigeria’s Insurance Industry’, stakeholders from across the insurance value chain said that innovation, technology, and infrastructure are critical for their growth.
Adebowale Banjo, co-founder of insurtech startup MyCover.ai, offered a perspective from the frontlines of disruption.
“The real challenge was readiness from traditional insurers,” he said. “But every challenge is an opportunity. We developed simple tools to help insurers onboard and manage customers—with or without traditional infrastructure.”
Banjo stressed that user education remains a significant hurdle. “We must simplify the process of buying insurance. People should understand what they’re paying for. If they don’t, we’ll never scale adoption.”
Speaking on the evolving face of insurance in Africa, Rosetta Aryeetey, head of Life Underwriting at Leadway Assurance Plc, focused on how data is transforming product development—especially in agriculture and cybersecurity.
“We are doing quite a lot with climate data,” Aryeetey said.
“We’ve partnered with agronomic platforms and climate tech firms to integrate satellite imagery, soil sensors, and weather forecasts into our underwriting models. This has allowed us to develop parametric insurance policies for smallholder farmers.”
These policies, she said, offer automatic payouts based on predefined climate triggers like rainfall or drought. “It’s a seamless claim experience. No long paperwork, no delays.”
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However, she acknowledged data limitations. “We’re not there yet. There are gaps in both the volume and quality of data, but we’re working towards it.”
During one of the panel sessions, Dunny Semwayo, executive director, technical at Stanbic IBTC Insurance, illustrated how banks are playing a pivotal role in delivering insurance products to the last mile.
“Embedding insurance into banking platforms makes it easier and cheaper to reach customers,” she said. “We are not just selling a products, we are integrating protection into everyday financial experiences.”
In the cyber risk space, the challenge is even more daunting. “We don’t have the volume of local data required to design robust cyber policies,” she noted.
Reinsurance partnerships, while essential, are hindered by data-sharing hesitancy on both sides.
From an investor’s perspective, Noble Obasi, team lead for capital markets at Sten & Blan Partners Inc., emphasised the importance of a clear and reliable regulatory framework.
“As a foreign investor, I need clarity on regulation, access to capital markets, and clear exit options,” he said. “If any of those are missing, it’s a hard pass.”
He called for policy reforms that make insurance investments more attractive to both local and foreign capital.
More innovation still needed
However, Olusegun Ayo Omosehin, commissioner for insurance/CEO, National Insurance Commission (NAICOM), who was represented by Ekerete Gam-Ikon, deputy commissioner for insurance, finance and administration, outlined three pillars for sustainable progress: innovation, technology, and infrastructure.
“We must leverage technology for inclusion, reach underserved populations, and build infrastructure that supports broader insurance coverage,” he said.
Acknowledging global disruptions from geopolitical shifts to rapid digitisation, he reaffirmed the commission’s commitment to steering Nigeria’s insurance sector through uncertain times.
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The insurance sector as a standalone contributes less than two percent to Nigeria’s GDP. Its contribution alongside finance grew to 6.22 percent in the fourth quarter of 2024, higher than 4.97 percent in the same period of 2023.
Delivering the keynote address, Chizoba Ehiogu, rector of the College of Insurance and Financial Management (CIFM), bared her feelings on challenges facing the insurance industry and how innovation could change the face of the business.
She described the Nigerian insurance sector as one facing formidable headwinds—rising inflation, foreign exchange volatility, and weak consumer confidence.
Speaking against the backdrop of sustained inflation, currency volatility and weak consumer confidence, Ehiogu stressed that only companies with agile and forward-thinking strategies could thrive.
“The only way we can return and stay in business during times of inflation or exchange rate fluctuation is to respond actively and smartly to the economic realities.”
She outlined several pragmatic steps insurers must take to remain resilient. One major point is the improvement of premium collections and investment in short-term and very liquid instruments. These instruments, she explained, will ensure that companies have the cash to settle claims swiftly as unexpected expenses arise—an increasingly common scenario amid Nigeria’s volatile macroeconomic conditions.
In 2024, Nigeria’s top insurers were able to shore up their bottom lines through their investment earnings. NEM Insurance posted a net investment result of N23.1 billion despite its impressive N18.8 billion insurance service result. AXA Mansard’s N34.5 billion net investment returns were also a significant boost to its 2024 financials.
Ehiogu emphasised product innovation, noting that “you cannot produce generic products in an economy with evolving risks.” She advocated for personalised solutions that foster long-term customer loyalty.
The conference also highlighted success stories and future opportunities for collaboration between traditional insurers and tech innovators.
