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

LCCI: Nigeria Must Adopt Reforms to Unlock Fintech Potential, Lead Digital Financial Hub in Africa

L-R: Prince Cookey, Publisher/Editor-in-Chief, Business Journal Media Group; Mr....

SEC DG: Capital Market Has Capacity to Fund Abuja Infrastructure Projects

Dr. Emomotimi Agama Director-General Securities and Exchange Commission (SEC) The Director-General of...

Mutual Benefits: Shareholders Back Strategic Growth Direction at 30th AGM

Historic 30th AGM: L-R: Managing Director/CEO, Mutual Benefits Life...

NGX, Brazilian Business Delegation Explore Areas of Collaboration, Partnership

WELCOME REMARKS BY ALHAJI (DR.) UMARU KWAIRANGA GROUP CHAIRMAN,...

Leadway’s Post-Recapitalisation Signals Era of Digital-First Insurance for Critical Sectors and Nigeria’s Next Generation

Leadway Assurance, Nigeria’s foremost insurance services provider and a...

Topics

Leadway Pensure Chairman, Olusegun Aganga, Joins Board of Technoserve

 The Board Chairman, Leadway Pensure PFA, Nigeria's foremost Pension...

NGE Condemns N5m NBC Fine on Channels TV over IPOB Interview

The Nigerian Guild of Editors (NGE) condemns in strong...

Curacel: The $3m Seed to Power New Insurance Experience in Africa

  Curacel, Africa’s leading insurance infrastructure provider, has raised $3...

Sanofi Unveils 5 Winners of AfriTech 2020

Sanofi, a bio-pharmaceutical company, has announced five winners in...

Nigeria Ranks 3rd in Mobile Malware Attacks in 2018

Four African countries made the list in terms of...

Stanbic IBTC Capital Leads RMB Nigeria’s ₦40bn Multi-Instrument Issuance Program

RMB Nigeria Issuance SPV Plc, a funding vehicle incorporated...

Ecobank Mobile App Handles $1bn Transactions in 18 Months

The groundbreaking Ecobank Mobile App, a single, unified financial...