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

NAICOM, Ghana’s NIC Strengthen Regional Integration, Drive Insurance Innovation

L-R: Dr. Abiba Zakariah; Commissioner for Insurance, National Insurance...

NCC, CAC Inform Telecom Stakeholders of New Ownership Structure Requirements

The Nigerian Communications Commission (NCC) and the Corporate Affairs...

NCC Appoints Princess Oforitsenere Emiko as Interim Chairman of Digital Bridge Institute Governing Board

The Board of the Nigerian Communications Commission (NCC) has...

Topics

PTAD Pays N846.1m Accrued Arrears, Gratuity to 2,730 Pensioners

The Pension Transitional Arrangement Directorate (PTAD) has paid the...

Infrastructure & Economic Growth: The Insurance Perspective

The text of the paper presented by Mr. Tope...

AIICO Insurance: Partnership by Stakeholders Necessary to Grow Agric Sector

Making a presentation on Agricultural Insurance at the annual...

‘African Businesses Should Embrace Cross-border e-Commerce’

Cross border e-commerce continues to provide significant growth opportunities...

NCC Directs Telecom Operators to Compensate Subscribers for Poor Network Service

The Nigerian Communications Commission (NCC) has directed Mobile Network...

‘Nigeria Must Invest In Human Capital Development’ –AMCON MD

Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria...

Mobile Technologies to Gulp $1.2tr by 2019

Organisations across industries are increasingly leveraging mobility to transform their businesses. Mobility may have started with the simple concept of shifting employees from being deskbound to being mobile. Industry-specific applications will be a driving force as businesses look for solutions that can be easily configured to their unique business and vertical requirements.

Nigerian Insurers Must Inculcate COVID-19 Experience in Transactions

Mr. O.S. Thomas Commissioner for Insurance National Insurance Commission (NAICOM) Mr. O....