Experts explain the limited uptake of insurance policies in Nigeria, according to the Nigerian Council of Registered Insurance Brokers.

The Nigerian Council of Registered Insurance Brokers has pinpointed several key factors contributing to the low insurance penetration in Nigeria, including the exclusion of pensions and micro insurance, a lack of technological integration, and widespread ignorance.

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These concerns were raised by the President of the NCRIB, Mrs Ekeoma Ezeibe, during the 2026 Inaugural Annual Insurance Week at Nnamdi Azikiwe University in Awka, Anambra State, on Tuesday.

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Ezeibe noted that Nigeria's insurance penetration lags significantly behind that of other countries, such as South Africa and Kenya, with Nigeria's penetration rate standing at less than one percent, compared to South Africa's nearly 12 percent and Kenya's rate of over 7 percent.

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According to Ezeibe, the high insurance penetration rates in South Africa and Kenya can be attributed to the significant role of pensions and micro insurance in driving their respective insurance markets.

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In Nigeria, however, the Pension Reforms Act has led to the exclusion of pensions from the insurance sector, with these funds now being managed by the National Pension Commission, resulting in a substantial loss of potential insurance revenue.

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Ezeibe suggested that if pension funds were to be incorporated into the Nigerian insurance net, the country's insurance penetration rate would likely experience a significant increase, similar to that seen in South Africa and Kenya.

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Another crucial factor contributing to low insurance penetration in Nigeria is the relatively recent attention given to micro insurance, with the National Insurance Commission having begun licensing micro insurance companies to cater to low-income individuals and businesses.

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These micro insurance companies have been authorized to provide coverage to artisans, farmers, food vendors, petty traders, and other low-income generators, with the aim of expanding the insurance safety net to include these previously underserved groups.

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The aggregation of these individuals and businesses into the insurance safety net has the potential to make a significant impact, demonstrating that even small contributions can collectively lead to substantial outcomes.

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Ezeibe also identified the underutilization of technology as a major obstacle to increasing insurance penetration in Nigeria, highlighting the importance of embracing technology due to its ability to facilitate ease of doing business, speed, and efficiency.

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Furthermore, ignorance was cited as another significant reason for the low insurance penetration rate, with Ezeibe emphasizing that ignorance is not exclusively linked to poverty, as even affluent individuals can be uninformed about the benefits of insurance.

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Ezeibe stressed the importance of creating awareness about insurance, noting that while faith can provide a sense of protection, it is also essential to apply human intelligence and take proactive steps to ensure one's well-being.

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The Vice-Chancellor of Nnamdi Azikiwe University, Prof Ugochukwu Anyaehie, commended the faculty for attracting key stakeholders from the insurance industry, expressing his belief that this collaboration would contribute to the institution's growth and development.

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Prof Alex Asigbo, representing the Vice-Chancellor, expressed the university's willingness to partner with the organization, including providing institutional support to further their shared goals.

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Earlier, Prof Victor Okonkwo, Programme Coordinator of the Insurance Programme, highlighted the relevance of the theme "Insurance for All: Driving Inclusion, Innovation, and Trust", describing it as a timely reflection of market demands and a crucial blueprint for national development.

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Okonkwo noted that the theme aligns with the Insurance programme's vision of advancing knowledge-driven, trust-based, and technology-enabled risk management solutions, aimed at enhancing financial security and promoting sustainable economic development across Nigeria and the continent.