Key challenges in the Nigerian insurance market include sluggish growth, low penetration rates, and the under-utilisation of technology, according to a report launched by the Financial Institutions Training Centre (FITC).
The report, titled “The FITC Insurance CEO and Industry Report”, presents insights from industry executives, analysing the sector’s state, challenges, and opportunities post-COVID-19.
The report also outlines paths to overcome the hurdles, highlighting digitisation, regulatory reform, recapitalisation, bancassurance, and InsurTech as crucial drivers for future growth.
At an event in February 2025 at which the report was launched, Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, recognised FITC for its role in shaping the industry’s future. He described the industry report as a roadmap for overcoming the sector’s challenges, particularly data integrity, regulatory frameworks, and innovation, reported the newspaper This Day.
He stressed the need for regulatory reforms, strong governance, and stakeholder collaboration to build a resilient insurance industry, assuring the insurance industry that NAICOM would consider the report’s recommendations to strengthen regulatory oversight and foster innovation.
Globally, Nigeria’s insurance industry is ranked 70th biggest in premium volume, behind countries like South Africa (20th) and the US (1st). Insurance penetration in Nigeria is less than 1%.
FITC was established in 1981 to provide innovative knowledge solutions and capacity building programmes that develop and strengthen resources for the Nigerian financial services sector through advisory services, learning, research and advocacy.
According to information on FITC’s website, the centre is owned by the Banker's Committee, which comprises the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, all licensed banks, and discount houses in Nigeria.