(3 minutes read)
· Insurance penetration in Nigeria is very low and remains at less than 1%
· The penetration rate of the sector, however, has plunged into 0.5 %, during 2020 due to the Covid-19 pandemic, according to official sources
· This rate does not compare well with South Africa’s 13.4%, which is far ahead of the average insurance penetration in Africa, which is very low
Insurance penetration in Nigeria is very low and remains at less than 1%. The penetration rate of the sector, however, has plunged into 0.5 %, during 2020 due to the Covid-19 pandemic, according to official sources. This rate does not compare well with South Africa’s 13.4%, which is far ahead of the average insurance penetration in Africa,
which is very low.
Analysts point out many reasons for low penetration of insurance in Nigeria in particular and Africa in general. They point out that macroeconomics gaps and inefficiencies are some of them. For instance, claims processes are still largely paper-based, exorbitant, time consuming and ineffective. A digital backbone for claim process can cut down the delays considerably. It is also being pointed out by the experts that higher penetration of insurance is indicative of economic inclusion and addressing the medical needs of the people.
Of late, companies are gearing to spread insurance and enlist more number of people. One among them is Curacel, an insurance technology platform. This insurance platform is leveraging artificial intelligence to process claims and fraud management in Africa. The firm is working with some of the biggest insurers in Nigeria, Ghana and Uganda.
