Expert Laments Low Insurance Penetration Despite Youth Population

Dr. Akeem Oyewale, the Chief Executive Officer of Marble Capital Limited, who delivered the keynote paper at the recent BusinessToday Annual Conference in Lagos said a financially empowered youth population boosts national savings and investments, just as higher insurance adoption reduces reliance on government social support, creating a more sustainable economy.

The theme of the conference was “Banking on the Future: Youths, Pension and Insurance Penetration.”

Oyewale lamented however that despite the growing youth population, insurance adoption remains alarmingly low, with Nigeria’s insurance penetration at just 0.5% of GDP, with minimal youth engagement.

“While the global average stands at 6.80%, Nigeria’s rate is significantly lower, suggesting that the country’s insurance sector is underdeveloped. Even in the African context, Nigeria’s penetration rate lags far behind leaders like South Africa (11.54%) and Namibia (7.41%).”

In his goodwill message, Mr. Segun Omosehin, the Commissioner for Insurance and CEO at NAICOM said the Commission is focused on driving innovation and expand youth penetration in the insurance sector in Nigeria.

“As the future depends on how we engage and equip our youth, it’s essential to prioritise their exposure and relevance in the financial sector. To achieve this, the Commission is focusing on building trust and driving innovation to cater to the evolving needs of our growing young population. By that, we encourage the insurance industry to ensure that insurance products and services are tailored to meet the unique requirements of younger generations, promoting financial inclusion, stability and greater adoption of digital insurance solutions.”

He said by emphasising youth engagement and promoting financial literacy, there is a huge opportunity to unlock the potential for growth and development in the insurance sector. This he added, will in turn, contribute to the overall economic prosperity of Nigeria, as the insurance industry plays a vital role in mobilising long-term savings, financing infrastructure projects and promoting risk management.

“As a Commission, we are committed to building trust and driving innovation which will pave the way for a more inclusive and sustainable financial system, where the needs of the young generation are at the forefront.”

He said to secure the financial future of young people, stakeholders must rethink engagement strategies by offering youth-friendly financial products to meet the unique needs of young people, strengthening financial education by introducing targeted literacy programs, leverage workplace initiatives to promote insurance participation.

“Insurance services are key initiatives that when made youth-friendly, can change the face of capital formation and wealth dynamics in Nigeria.”

 

Hot this week

Leadway Sustains Support to Nigeria’s Creative Economy with 4th Consecutive Sponsorship of Lagos Leather Fair

Leadway, Nigeria’s leading non-banking financial and wellbeing conglomerate, has...

Insurance Meets Tech (IMT) Unveils 5th Edition for September 18, 2026

West Africa's leading insurance and technology conference, Insurance Meets...

Shell Appoints Elohor Aiboni as Executive VP, Country Chair Nigeria

Elohor Aiboni The incoming Executive Vice-President and Country Chair Shell Companies...

Heirs Insurance Group Extends Rewards Programme to Corporate Clients, Unlocking Lifestyle, Wellness Benefits for Employees

Heirs Insurance Group, Nigeria’s fastest growing insurance group, has...

Stanbic IBTC Pioneers Digital Supply Chain Financing in Nigeria through CycleFlow Partnership

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings,...

Topics

Red Star Express Plc Partners DealDey to Enhance eCommerce Industry

In a strategic bid to constantly exceed customers’ expectations and enhance the eCommerce industry in Nigeria, Red Star Express Pl, has partnered with DealDey to take the online shopping business to greater height. Online shopping is fast gaining ground in Nigeria, taking up most conventional shopping as people, especially the elite, working class and the youth, who run tight/ busy schedules, place their orders from the online stores at the comfort of their homes and offices, and their purchases are delivered to them.

NAICOM Inaugurates 2025 Recapitalisation Committee to Achieve $1tn Economy Target

The National Insurance Commission (NAICOM) has constituted a 2025...

The NAICOM 5-Point Plan to Drive Insurance Growth in Nigeria

(4th Left): Mr. O. S. Thomas, Commissioner for Insurance/CEO,...

PenCom: Using Touts to Obtain Pension Clearance Certificate is Unlawful

The attention of the National Pension Commission (the Commission)...

Emirates Returns to Nigeria from October 1, 2024

Emirates will resume services to Nigeria from 1 October...

U.S. Banks Plan $16.6bn Digital Transformation in 2015

Retail banks (including thrifts and credit unions) in the U.S. will spend nearly $16.6 billion on hardware, software, services, and internal IT staff in order to develop and implement digital transformation initiatives in 2015. And this spending on digital transformation will grow at an average CAGR of 10.4% into 2019, according to recent IDC Financial Insights spending models. This compares to an overall IT spend growth of 3.9% for U.S. banks. A new report from IDC Financial Insights, “The Cost of Digital Transformation in US Banking: The Critical Technology Investments in 2015 and Beyond,” outlines how much money is being invested by U.S. banks in digital transformation, where those investments are going, and where IDC Financial Insights believes the growth will be the strongest in digital transformation investment.

NESTLE: Building Sustainability into Product Design Process

The Nestle Brands The way a product or service is...

African Enterpreneurs Cite Finance, Govt Support As Growth Indices

On the eve of U.S. President Barack Obama’s visit to Kenya for the Global Entrepreneurship Summit, GeoPoll, the Global Entrepreneurship Network and the U.S. State Department released a survey of 1,000 business-owners throughout sub-Saharan Africa on entrepreneurship in their countries.