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Insurtech Drive: Insurers eye N1 trillion gross premium in 2023 by leveraging tech

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Insurancetech

Nigeria’s insurance companies are aiming to achieve over N1 trillion in gross premium this year by leveraging technology to drive insurance product adoption and acceptability in the country. 

This point was made clear on Thursday at the Insurance Meets Tech (IMT 2.0) conference with the theme: ‘Unlocking Policy and Tech Bottleneck Hindering Disruptive Insurance Penetration’.

With a resolve to push insurance penetration in Nigeria beyond its current level of less than 1%, the insurers want to surpass last year’s record of N726.2 billion gross premium.  

Speaking at the event, the President of the Nigerian Insurers Association (NIA) Olusegun Omosehin, said despite the current challenges of inflation and inadequate infrastructure in the country, insurers are embracing technology to drive growth.

With this, he said the insurance gross premium in Nigeria is expected to cross N1 trillion at the end of 2023. 

While noting that the insurers are also working with the industry regulators to drive insurance awareness, the NIA President said: 

However, during a panel session at the event to identify why insurance penetration in Nigeria is still less than 1% despite the efforts being put in place over the years to drive adoption, Client Technology Lead at Microsoft, Wole Odeleye, said one key thing that is missing in the insurance industry is embeddedness.

According to him, insurance services need to be embedded into banking services, which has already been embraced by Nigerians in order to get wider acceptance.  

He noted that this strategy was what led to the success of fintechs in Nigeria as they embedded their services into the financial system and latched onto what Nigerians love to do.  

In his welcome address, the Convener of the Insurance Meet Tech event, Mr. Odion Aleobua, said the burgeoning success of insurtech companies with substantial millions of dollars in investment underscores the importance of embracing technology and innovation to shape the future of insurance in Nigeria.

While noting that the N726.2 billion gross premium recorded by the insurance industry last year was impressive, he said a look at the gross earnings of Zenith Bank alone for the same year, which stood at N945.5 billion would show that the Nigerian insurance industry has yet to scratch the surface.  

He noted that the Insurance Meet Tech event was designed to harness the potential of the insurance industry by bringing together visionaries, innovators, and industry leaders committed to pushing the boundaries of what insurance can achieve in Nigeria.  

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