The Nigerian insurance landscape is poised for a significant transformation in 2025, driven by the Nigerian Council of Registered Insurance Brokers (NCRIB). The NCRIB, under the leadership of its President, Bàbàtunde Oguntade, has unveiled an ambitious plan to integrate insurance into everyday transactions, ensuring that no Nigerian experiences 2025 without some form of insurance coverage. This initiative, dubbed the “New Market Agenda”, will leverage partnerships with supermarkets to offer insurance on purchased items, particularly major assets. The NCRIB envisions a collaborative model where insurance brokers work with a pool of underwriters to facilitate these transactions, mimicking the insurance offerings already provided by some phone vendors. This innovative approach aims to address the persistent challenge of low insurance penetration in Nigeria, bringing insurance closer to the average consumer and dismantling the misconception that insurance is solely for the affluent.
The NCRIB’s strategy is not just about increasing insurance uptake; it’s about shifting the narrative around insurance. Recent incidents, such as explosions in Ibadan, highlighted the vulnerability of uninsured assets and underscored the need for broader coverage. Oguntade emphasized the importance of raising insurance awareness and providing tailored advice to individuals and businesses. The NCRIB plans to move beyond simply selling insurance products and instead engage with clients to understand their specific business needs and risk exposures. This consultative approach will allow brokers to offer relevant insurance solutions, positioning insurance not as an added expense but as a crucial risk management tool. The Council aims to integrate insurance into financial planning, highlighting its cost-effectiveness compared to interest payments on borrowed funds. This strategy aims to reposition insurance as a financial friend, not a burden.
The NCRIB acknowledges the prevalence of misconceptions about insurance costs. Oguntade pointed out that motor insurance, often perceived as expensive, represents only five percent of the vehicle’s value, significantly less than the interest accrued on loans. This comparison underscores the affordability of insurance relative to other financial obligations. Furthermore, the NCRIB plans to highlight the role of insurance companies in lending to businesses, showcasing the industry’s contribution to economic growth. This initiative aims to further solidify insurance as an integral part of the financial ecosystem, not merely a cost center. The NCRIB intends to actively engage with government agencies to ensure that a substantial portion of the budget is allocated to the insurance industry, recognizing its potential to stimulate economic activity.
Oguntade’s first year as NCRIB President has seen significant progress towards his eight-point agenda, “Breaking New Grounds, Sustaining Legacies.” Beyond stakeholder engagement and relationship building, a major achievement has been the groundbreaking for a new five-story annex building, the Olola Olabode Ogunlana House. This project signifies a substantial investment in the future of the NCRIB and the insurance industry at large. The building, when completed, will not only provide additional office space but also serve as a revenue stream for the Council through commercial leasing. This initiative aims to reduce the NCRIB’s reliance on member subscriptions, ensuring financial stability and long-term sustainability.
The construction of the Olola Olabode Ogunlana House is a tangible manifestation of the NCRIB’s commitment to growth and modernization. The additional parking facilities and modern office spaces will enhance operational efficiency and provide a professional environment for members and stakeholders. The building will also serve as a symbol of the NCRIB’s vision for a more robust and accessible insurance sector in Nigeria. The revenue generated from commercial leasing will enable the NCRIB to invest further in initiatives that promote insurance awareness and education, ultimately benefiting the Nigerian public. This project underscores the NCRIB’s dedication to not only improving its own operations but also contributing to the development of the insurance industry as a whole.
In summary, the NCRIB’s strategic initiatives for 2025 represent a bold and innovative approach to tackling the challenge of low insurance penetration in Nigeria. By integrating insurance into everyday transactions through supermarket partnerships, the NCRIB aims to make insurance more accessible and relevant to the average consumer. Through targeted awareness campaigns and a consultative approach to client engagement, the Council seeks to dispel misconceptions about insurance costs and highlight its role as a vital risk management tool. The construction of the Olola Olabode Ogunlana House signifies a commitment to long-term sustainability and reinforces the NCRIB’s dedication to advancing the insurance industry in Nigeria. These combined efforts signal a transformative period for the Nigerian insurance landscape, with the potential to significantly improve financial security and resilience for individuals and businesses across the country.
