As Nigeria’s insurance industry turns from strengthening balance sheets to expanding coverage, global examples show why faster claims, affordable products and digital distribution could hold the key to winning customers, writes ODINAKA ANUDU
For many Nigerians, the value of an insurance policy is not determined by the promises made when it is sold, but by what happens when an accident, illness, fire or other unexpected event occurs.
This is the challenge confronting Nigeria’s insurance industry as it looks beyond recapitalisation to the task of attracting millions of new customers.
The National Insurance Commission has identified low public awareness, weak consumer trust and fragmented distribution channels among the obstacles limiting insurance uptake. In September 2026, the regulator launched its Insurance Sector Strengthening Programme, targeting an increase in insurance penetration from about 0.5 per cent of gross domestic product to 10 per cent by 2031.
Experts say, however, that achieving that ambition will require insurers to do more than strengthen their capital base by making insurance relevant to everyday life, affordable to households and small businesses, and dependable when policyholders need support.
Claims settlement
One of the clearest lessons from global insurance markets is that claims settlement should be treated as a central part of customer acquisition, rather than simply an obligation after a loss.
In Singapore, MSIG Insurance has used digital processes to simplify claims and accelerate payments. The insurer reported in August 2026 that it had achieved a 94 per cent claims settlement ratio. It also said 92 per cent of fast-track claims were settled within three days.
Recent surveys by Sollers Consulting and Ipsos, conducted across four countries, reveal that between 52 per cent and 63 per cent of insurance customers rank fast claims settlement as a top priority after filing a claim.
For Nigerian insurers, the lesson is to make the claims process easier to navigate, communicate requirements clearly and provide regular updates on outstanding claims. Where claims are approved, electronic payments can reduce the administrative delays associated with manual processing.
“The demand for expedited claims handling is revealed to be shaping customer satisfaction significantly, overshadowing even the amount of compensation received, particularly in the UK, Germany, and France.” the research firms, Sollers and Ipsos, noted.
The Chairman of Nigerian Insurers Association, Mrs Ebelechukwu Nwachukwu, said the industry must move beyond celebrating the capital-raising exercise to demonstrate tangible improvements in service delivery, innovation and insurance penetration.
“We must resist the temptation to celebrate the recapitalisation as an end. The real test lies in translating stronger balance sheets into underwriting capacity, innovation, better claims service, and wider penetration,” she said recently in Awka, Anambra State.
Another lesson is that insurers must design products around the financial realities of the people they want to cover
In Kenya and Uganda, microinsurance company, Turaco, has partnered with financial services provider, ASA International, to offer credit-life, life and hospital cash protection through microfinance loans. The product launched in Kenya in 2025, with premiums starting at $0.50 per month and digital claims designed to enable payouts in under 72 hours.
By linking protection to an existing financial relationship, the arrangement reduces the effort required for customers to obtain cover.
Nigerian insurers could adapt this approach through partnerships with cooperatives, microfinance banks, market associations, agricultural groups and digital lenders.
Customer-centric platforms
Global and African insurance markets also demonstrate the potential of embedded insurance, in which cover is offered through an existing transaction or service.
Rather than requiring customers to visit an insurance office, providers can distribute policies through banks, retailers, mobile applications, lenders and other platforms with established customer relationships.
“The approach can lower distribution costs and make insurance easier to purchase,” said a United Lingdom-based insurance expert, Aliyu Yahaya.
“For Nigeria, this could mean offering appropriate protection alongside vehicle financing, digital payments, agricultural inputs, travel bookings and small-business loans,” he noted.
Partnerships would also help insurers reach people beyond major cities, where conventional agency networks may be expensive to maintain.
Digital platforms can make it easier to buy policies, renew cover, submit documents and receive payments. But simply launching an application does not guarantee better service.
In Singapore, banking technology has helped insurers automate approved claims payments. A case study published by DBS described a digital claims system that reduced average settlement time from about two weeks to almost instantaneous after approval.
Nigerian insurers could use similar approaches to automate routine claims, verify documents and provide customers with real-time updates.
Nigeria’s recapitalisation exercise has created an opportunity for insurers to compete on a stronger financial foundation. But capital alone will not persuade an uninsured household to buy a policy or convince a dissatisfied customer to renew one, analysts say.
“The industry must demonstrate that its products respond to real risks, its prices reflect customers’ circumstances and its claims processes deliver on promises,” added Yahaya.
