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

Guinness “Open For More” Promo Grand Prize Winner Drives Home ₦150m Toyota Prado as 1,075 Consumers Win Big

L-R: Rotimi Odusola, Legal and Corporate Relations Director, Guinness...

How Nigerians Abroad Can Grow Wealth at Home

By Tolulope Rojaiye A Nigerian professional in London closes her...

Tinubu Commends World Bank Report on Positive Impact of FG Reforms

President Bola Ahmed Tinubu has welcomed the World Bank's...

OPay Plans IPO in US, Listing on NGX to Empower Nigerian Investors

The prospect of Nigerian investors owning a stake in...

Topics

1bn Women Worldwide Lack Access to Financial System

$300bn Financing Gap Between Men & Women. Financial exclusion remains a major constraint for women, particularly in developing countries. More than one billion women still do not use or have access to the financial system, according to the World Bank Group’s latest Global Findex Report. IFC has estimated that worldwide, a $300 billion gap in financing exists for formal, women-owned small businesses, and more than 70 percent of women-owned small and medium enterprises have inadequate or no access to financial services.

1st Nutrition Africa Investor Forum Targets Private Sector Food Industry

The Global Alliance for Improved Nutrition (GAIN)- an international...

NCDMB ES Visits Pipe Coating Firms, Pledges Support for Local Capacities

The Nigerian Content Development and Monitoring Board (NCDMB) has...

M&A Transactions in Africa Falls in 1st Half 2018

Total deal volumes and values of Merger & Acquisition...

Polaris Bank, Evolve Charity Trust Empower 1,000 Students with School Essentials

Polaris Bank, in partnership with Evolve Charity Trust, has...

Ecobank Confab: Experts Advise Employees, Small Business Owners on Income Diversification

  Salary earners, individuals, self-employed and small businesses have been...