The Nigerian insurance sector is being urged to adapt to the realities of a changing demographic and economic landscape by focusing on the needs of the youth. The National Insurance Commission (NAICOM), recognizing the crucial role of young people in the future of the industry, has emphasized the need for insurance products tailored to this segment of the population. This call to action comes as experts and stakeholders converge to discuss the future of insurance and pensions, particularly their penetration among the youth. The ninth BusinessToday Insurance and Pension conference served as a platform for this critical discussion, highlighting the importance of engaging the youth in securing their financial futures and driving the growth of the insurance sector.
NAICOM’s Commissioner for Insurance, Olusegun Omosehin, stressed the importance of forward-thinking in product development, urging operators to anticipate the future needs of young consumers. He underscored the role of innovation in creating products and services that resonate with this demographic, advocating for digital solutions that align with their tech-savvy nature. This proactive approach is vital for building trust and ensuring the long-term financial security of the next generation. The conference itself was lauded as a catalyst for policy changes, innovation, and increased financial penetration, all essential for securing the future of the industry. The importance of youth engagement in shaping a vibrant financial sector was also emphasized, with a focus on providing them with the necessary tools and knowledge for financial success.
The insurance industry is being explicitly encouraged to design products and services that cater to the unique needs of younger generations. This includes promoting financial inclusion and stability, as well as leveraging digital platforms to reach this tech-savvy demographic. This focus on youth engagement and financial literacy is seen as key to unlocking the vast potential of the insurance sector, contributing significantly to Nigeria’s overall economic prosperity. The insurance industry plays a pivotal role in mobilizing long-term savings, financing crucial infrastructure projects, and facilitating effective risk management, all of which are crucial for sustainable economic growth. By investing in the youth, the industry is essentially investing in its own future and contributing to a brighter economic outlook for the entire nation.
NAICOM reiterates its commitment to building trust and driving innovation within the insurance sector, paving the way for a more inclusive, resilient, and sustainable financial system. This commitment places the needs of the younger generation at the forefront, recognizing their importance as the future drivers of the economy. The discussion extends beyond mere product development, encompassing a broader strategy of financial education and engagement to empower young people to take control of their financial futures. This approach acknowledges the importance of financial literacy as a foundation for long-term economic security. The conversation highlighted the need to equip young people with the knowledge and tools necessary to navigate the complexities of the financial landscape, thereby enabling them to make informed decisions about insurance and pensions.
Akeen Oyewale, Managing Director/Chief Operating Officer of Marble Capital, addressed the conference, focusing on the preparedness of Nigerian youths for financial security in a volatile and uncertain economic environment. He highlighted the anticipated shift in wealth distribution in the future, emphasizing the need to incorporate young people into insurance and pension schemes, coupled with robust financial education. This proactive approach is crucial for ensuring their economic security in the face of future challenges. Oyewale expressed concern about the lack of preparedness among many young people for financial uncertainties, stressing the need for focused efforts to guide them towards financial stability. He advocated for a comprehensive approach to financial education, ensuring that young people understand the value of insurance and pensions, not only for themselves but also for the broader economy and future generations.
Oyewale emphasized the importance of building trust in the system, acknowledging the historical challenges in this area. Both NAICOM and industry operators have a crucial role to play in changing the narrative and addressing the negative perceptions surrounding insurance and pensions. He advocated for a proactive approach to dispel misinformation and debunk negative narratives, urging the industry to embrace a “push marketing” strategy to reach untapped markets, particularly through digital channels. This strategy, he believes, is essential for improving insurance and pension penetration among young people. He urged the industry to intensify its efforts to improve the image and accessibility of insurance and pensions, emphasizing the importance of youth engagement in shaping the future of these sectors. The message underscores the need for a collaborative effort involving regulatory bodies, operators, and other stakeholders to ensure the financial security of young Nigerians and the overall health of the economy.
