Executive Summary
Insurance adoption in Nigeria remains low, with only a small percentage of the population covered, despite its potential to provide financial security. A 2018 survey by the Chartered Insurance Institute of Nigeria (CIIN) indicated that a significant majority of Nigerian adults lack any form of insurance coverage. Factors contributing to this include a reliance on faith for protection, a lack of trust in insurance companies' claims settlement processes, and economic considerations that prioritize immediate needs over long-term financial planning. However, the National Insurance Commission (NAICOM) has implemented regulations to improve the industry's financial strength and address concerns about claim settlements. Coronation Insurance, for example, has demonstrated its commitment to paying claims promptly, with substantial amounts paid out in 2022 and 2023, indicating positive steps towards building trust and increasing insurance uptake.
- Low insurance adoption in Nigeria stems from lack of knowledge, low income, and distrust, hindering financial security.
What Is Driving The Story?
- Lack of public awareness
- Distrust in insurance companies