Insurance must become visible first before it can become universal
Niyi Onifade, Managing Director/CEO, Heirs Life Assurance
By Niyi Onifade, Managing Director/CEO, Heirs Life Assurance
Opening Argument: Nigeria will not achieve mass insurance adoption solely by building trust in insurance; it will achieve it by making insurance valuable long before a claim is ever needed
The National Insurance Commission (NAICOM) deserves commendation for its efforts, particularly in implementing the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025), which is aimed at driving growth and strengthening the insurance sector.
The recent launch of the Insurance Sector Strengthening Programme (ISSP) is one of the most significant developments in the industry in recent years. Its bold ambition – to deepen penetration, strengthen institutions, expand inclusion, and create a more resilient industry capable of supporting national economic growth – is commendable.
However, if the industry is to achieve the ISSP’s objective of increasing insurance penetration from 0.5 per cent to 10 per cent by 2031 and contribute meaningfully to the federal government’s aspiration of a one trillion dollar economy, we must confront an uncomfortable reality: Our industry faces a value visibility challenge.
Most Nigerians understand risk. Families worry about medical emergencies. Business owners worry about disruption. Homeowners worry about loss and damage. Yet, insurance is often perceived as relevant only after a crisis occurs.
For many people, insurance remains an invisible product. Premiums are paid today for a benefit that may never be experienced tomorrow. This perception creates doubt – and addressing it should be the next phase of industry transformation must begin.
As we strengthen regulation, improve capitalisation and increase public awareness, we must also think about how customers experience insurance itself. The future of insurance will belong to companies and markets that make insurance valuable not only at claims stage, but throughout the customer journey.
Globally, leading insurers are increasingly moving beyond the traditional promise of protection. They are building ecosystems that help customers live healthier, safer and more financially secure lives. Insurance is evolving from a risk-transfer mechanism to a platform for delivering continuous value.
Nigeria should embrace the same evolution. To sustainably expand penetration, we must move from a claims-driven industry to a value-driven industry.
This means creating propositions that allow customers to experience tangible benefits long before they need to make a claim. For example, a young professional should receive financial wellness support; a small business owner should gain access to tools, services and partnerships that help their enterprise grow; and a family should enjoy benefits that improve their quality of life.
When customers experience value regularly, insurance ceases to feel like a mandatory expense and becomes a meaningful part of everyday life. This shift has important implications for the ISSP. The programme’s focus on women, young people and MSMEs is especially timely. These segments represent some of Nigeria’s most dynamic economic contributors, yet they remain underserved by conventional insurance models.
Expanding access alone will not be sufficient. We must design solutions tailored to their realities, businesses and aspirations. This requires innovation that goes beyond product development. It requires stronger digital engagement, better customer experiences, more personalised offerings and deeper collaboration across industries.
I see a brighter future for our industry, and I am particularly pleased to be part of the actors shaping it. The future, as I envision it, is a platform that connects customers not only to protection, but also to healthcare providers, wellness services, retailers, financial advisory support and other value-adding solutions. Technology will be a critical enabler of this transformation.
At Heirs Insurance Group, this vision continues to drive many of our innovations. We believe the industry’s success will be measured not only by how efficiently it pays claims but also by how effectively it creates value throughout the customer relationship. From digital platforms to customer rewards and AI-enabled engagement, our focus is on making insurance simpler, more accessible and more relevant to everyday life.
The ISSP provides a strong foundation for the future. Its greatest legacy will not only be higher penetration figures or stronger balance sheets. It will be the creation of a fundamentally different insurance culture – one where insurance is no longer perceived as a reluctant purchase but as a service that actively improves lives.
One where customers experience value before they experience loss. One where protection is not merely promised but consistently demonstrated.
Trust will always matter. But trust alone will not deliver the scale of transformation Nigeria seeks.
The next chapter of insurance growth will be defined by an industry that makes its value visible, tangible and relevant every day. When that happens, higher penetration will no longer be a goal we pursue – It will become the natural consequence of building an insurance ecosystem that Nigerians genuinely want to be part of.
The success of our industry will be defined not by the policies we sell but by the lives we improve. Let’s build an insurance future Nigerians can trust, experience, and value every day.
