Nigeria must make insurance more valuable to consumers beyond claims payment to achieve the industry’s target of increasing penetration to 10 per cent by 2031 the Managing Director/Chief Executive Officer of Heirs Life Assurance Niyi Onifade has said.
Onifade said building public trust alone would not be enough to expand insurance adoption stressing the need for insurers to provide benefits that customers could enjoy throughout their relationship with insurance companies.
He said this would require a shift from the traditional claims-driven model to one that delivers continuous value to policyholders including financial wellness support healthcare services and other benefits that improve their daily lives.
Onifade who made the submission in a statement titled: ‘Insurance Must Become Visible First Before It Can Become Universal’ commended the National Insurance Commission (NAICOM) for its efforts to strengthen the sector particularly through the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025).
He also described the launch of the Insurance Sector Strengthening Programme (ISSP) as a significant development noting that its objectives include deepening penetration strengthening institutions and expanding insurance inclusion.
According to him achieving the programme’s target of raising penetration from 0.5 per cent to 10 per cent by 2031 would require the industry to address what he described as a ‘value visibility challenge’.
He said many Nigerians understood the risks associated with medical emergencies business disruptions and property damage but often viewed insurance as relevant only when a loss occurred.
‘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’ he said.
Onifade argued that insurers must develop products and services that meet the specific needs of young professionals small business owners and families making insurance a more meaningful part of everyday life rather than an expense whose benefits may never be experienced.
He said the ISSP’s focus on women young people and micro small and medium enterprises (MSMEs) was timely but added that expanding access alone would not be sufficient without solutions tailored to the realities and aspirations of these groups.
He called for stronger digital engagement personalised offerings and collaboration with other industries to connect policyholders to healthcare providers wellness services financial advisory support and other value-adding services.
Onifade said technology would play a critical role in the transformation adding that Heirs Insurance Group was exploring innovations including digital platforms customer rewards and artificial intelligence-enabled engagement to make insurance simpler and more accessible.
He said the success of the ISSP should be measured not only by higher penetration rates and stronger balance sheets but also by the industry’s ability to improve customers’ lives and demonstrate the value of insurance before claims become necessary.