WHY MILLIONS OF NIGERIANS LACK INSURANCE COVER

Despite the potential benefits of insurance, millions of Nigerians remain without any form of coverage, largely due to a combination of economic, cultural, and structural factors.

Low awareness remains a major barrier, with many citizens viewing insurance as an unnecessary expense rather than a critical risk management tool. High levels of poverty and the daily struggle to meet basic needs further limit the ability of households to allocate funds for insurance premiums.

Experts also point to a lack of trust in the industry, stemming from past experiences of delayed or denied claims. The complexity of insurance products and limited financial literacy make it difficult for many to understand and appreciate the value of different policies.

In addition, the high cost of premiums relative to income levels and the concentration of insurance providers in urban areas have left rural populations largely underserved. Regulatory challenges and inadequate distribution channels have also contributed to low penetration rates.

Stakeholders are calling for intensified public education campaigns, product innovation tailored to local needs, and stronger regulatory frameworks to build confidence in the sector. Experts believe that addressing these issues is essential for increasing insurance uptake and supporting economic resilience.