Stakeholder raises concern, says insurance still below 1% of Nigeria’s GDP

Nigeria’s insurance penetration remains below one per cent of Gross Domestic Product, leaving households and businesses exposed to financial shocks arising from ill-health, accidents, business failures and other emergencies.

AXA Mansard Insurance raised the concern at the launch of its “Culture of Care” campaign in Lagos, warning that the country’s protection gap required more than increased public awareness.

The Chief Executive Officer of AXA Mansard Insurance, Kunle Ahmed, said Nigerians needed to view insurance as a tool for financial protection rather than an additional expense.

According to him, the industry would struggle to close the protection gap unless insurance became more accessible and relevant to the everyday needs of Nigerians.

“Protection does not begin with an insurance policy. Protection begins with people,” Ahmed said.

His remarks came as the insurance sector adjusts to the Nigerian Insurance Industry Reform Act 2025 and the ongoing recapitalisation of underwriting firms.

Ahmed said increased capitalisation alone would not resolve the industry’s challenges, stressing that the effectiveness of reforms should be measured by insurers’ ability to underwrite larger risks, settle claims faster and support investment in key sectors.

He identified agriculture, manufacturing, infrastructure and digital services as areas where improved insurance coverage could reduce risks and attract investment.

“The challenge is therefore not simply awareness. The challenge is helping Nigerians see insurance not as an expense, but as a practical expression of care,” he said.

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The group’s other subsidiaries also highlighted the impact of low insurance penetration on household financial security.

The Chief Executive Officer of AXA Mansard Health, Tope Adeniyi, said inadequate health insurance coverage continued to expose families to financial hardship.

Adeniyi described healthcare as an economic issue that directly affected national productivity.

The company said it was expanding preventive healthcare through its AXA One Health platform.

Also speaking, the Chief Executive Officer of AXA Mansard Investments, Tunde-Anjo, said long-term savings and investments were essential for households to meet future obligations, including education, housing and healthcare.