Insurance must deliver value beyond claims to boost penetration: Expert

Niyi Onifade, managing director of Heirs Life Assurance, says the Nigerian insurance industry must go beyond paying claims and deliver tangible benefits to customers throughout their relationship with insurers to drive wider adoption.
Mr Onifade disclosed this in an article on Thursday, entitled ‘Insurance Must Become Visible First Before It Can Become Universal’. He said that if insurance were made valuable to customers even before they needed to make claims, it would help address the industry’s value-visibility challenge and drive sustainable growth.
Mr Onifade highlighted the need for insurers to rethink their approach to customer engagement.
“Nigeria will not achieve mass insurance adoption solely by building trust but by making insurance valuable long before a claim is needed,” he said.
Mr Onifade lauded the National Insurance Commission (NAICOM) for strengthening the industry, particularly through the implementation of the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025). He also described the launch of the Insurance Sector Strengthening Programme (ISSP) as a significant development aimed at deepening penetration, strengthening institutions and expanding inclusion.
Mr Onifade, however, said the industry must address the perception that insurance matters only when a crisis occurs.
“Most Nigerians understand risk. Families worry about medical emergencies. Business owners worry about disruption. Homeowners worry about loss and damage. Yet, insurance is often perceived as relevant only after a crisis occurs,” he said.
He noted that many Nigerians viewed insurance as an invisible product, with premiums paid today for benefits that might never be experienced. According to him, the industry must make insurance valuable not only at the claims stage but throughout the customer journey.
Mr Onifade said global insurers were increasingly moving beyond the traditional promise of protection by building ecosystems that helped customers live healthier, safer and more financially secure lives.
“Insurance is evolving from a risk-transfer mechanism to a platform for delivering continuous value.
“Nigeria should embrace the same evolution. To sustainably expand penetration, insurers must move from a claims-driven industry to a value-driven industry,” he said.
(NAN)
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