Rising accident cases across Nigeria’s roads, workplaces and homes are exposing a significant gap in personal insurance protection among millions of individuals and households despite growing risks.
While motor insurance adoption has improved largely due to regulatory enforcement, voluntary covers that protect individuals against injury, permanent disability, or accidental death remain largely underutilised.
“My experience at an orthopaedic hospital, where patients who had accidents and have been hospitalised for over three months are paying out of their pockets for treatment, makes me weak about our personal protection mentality,” says Iya Bolu, who has been taking care of her brother who was involved in a motor accident in Ibadan in early 2025.
According to her, leaving households financially vulnerable when unforeseen incidents occur is something everyone should try to avoid.
Data from the Federal Road Safety Corps (FRSC) revealed that accidents across Nigeria in 2025 rose by 9.2 percent, resulting in 10,446 total road traffic crashes compared to 2024.
While fatalities slightly declined by 2.4 percent to 5,289, there was a 7.2 percent increase in injuries to 33,400.
Benjamin Agili, managing director/CEO, AvanGarde Insurance Brokers Limited, speaking on the uptake of personal accident insurance and why it has not played its role effectively in Nigeria, said the trend reflects both limited awareness and economic constraints that continue to slow adoption.
He noted that the rising frequency of accidents should prompt individuals and families to rethink their level of protection beyond compulsory policies.
According to him, accidents remain one of the most common risks people face in daily life, making it essential for individuals to consider policies that provide financial protection in the event of injury, disability or death.
“If you are insuring your property against risks such as fire, burglary or household damage, it is also important to consider personal accident insurance. These are risks that can easily occur in everyday life and they affect people directly, not just their assets,” Agili said.
He explained that personal accident policies are designed to provide compensation for situations such as permanent or total disability, medical expenses arising from accidents, and accidental death.
“In some cases, the cover can even be arranged as group personal accident insurance for organisations or groups. It protects medical expenses, disability and even death arising from accidents, ensuring that individuals and their families are not left financially stranded,” he noted.
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Agili pointed out that despite the availability of such products in the Nigerian insurance market, uptake remains low largely due to public perception about insurance and limited awareness of its benefits.
“The challenge we still face is the attitude of many Nigerians towards insurance and the way insurance is perceived. That perception remains a major obstacle to deeper penetration in the country,” he said.
He noted that motor insurance remains the most widely held policy in Nigeria, mainly because it is compulsory and enforced by law enforcement agencies.
“If you take a sample of insurance policies in Nigeria, the most common one you will find is motor insurance. That is largely because the government and the police enforce it on the roads. But how many people go the extra step to insure their homes, their household equipment, or their lives through personal accident policies? Very few people do,” he added.
Beyond awareness, Agili said the economic realities faced by many Nigerians also influence their ability to purchase insurance products.
“Another major factor is disposable income. Everyone wants to leave a legacy for their family or their children, but people must first have the financial capacity to make those commitments. If they can afford it, it is wise to consider both personal accident insurance and life insurance for themselves and their families,” he said.
He stressed that personal accident insurance can also help protect long-term family priorities, particularly education.
Olamide Olajolo, managing director/CEO, Coronation Insurance Plc, said that a prosperous continent begins with financially secure individuals.
“Every person who purchases comprehensive coverage contributes to national resilience,” Olajolo said, adding that when families are not devastated by unexpected health crises or accidents, they maintain economic productivity.
He said, “When businesses have proper protection, they survive setbacks and continue generating employment.”
He noted that insurance penetration in Nigeria remains stubbornly low despite obvious vulnerabilities, adding that people often postpone crucial decisions, thinking they will address protection later.
“Act now, protect yourself today, and here’s something extra for your decisiveness. We’re transforming hesitation into action.”
Accident insurance is a major segment of the non-life insurance business, contributing 8.9 percent of the N2.5 trillion total non-life insurance premium in the second quarter of 2025.
Nigeria’s insurance industry gross written premium rose to a record high of N1.213 trillion in the second quarter of 2025, indicating a 49.3 percent growth rate compared to the same period in 2024 and a 57.8 percent quarter-on-quarter increase, according to the Bulletin of the Insurance Market Performance released by the National Insurance Commission (NAICOM).
Agili further maintained that Nigeria still holds significant untapped opportunities for insurance growth, especially in personal lines such as accident and life insurance.
“If the economy improves and people’s disposable income increases, there are many areas where the insurance industry can expand significantly. That is why insurance penetration in Nigeria is still very low. For more than a decade, efforts have been made to increase it, yet it remains below one percent,” he noted.
He contrasted Nigeria’s situation with other African markets where insurance adoption is on the rise.
“This is quite different from what we see in countries like South Africa, Morocco and Egypt, where insurance penetration is significantly higher. It shows the scale of opportunity that still exists in Nigeria if awareness improves and economic conditions support consumers,” Agili said.
