Nigeria’s insurance sector must evolve or risk extinction, says Enterprise Life MD

Nelson Akerele, the managing director (MD) of Enterprise Life Assurance Nigeria, says the country’s insurance sector must evolve or risk facing extinction.

Akerele called on players in the Nigerian insurance industry to embrace digital transformation while speaking on a panel at the Insurance Meets Tech 4.0 conference in Lagos.

The panel, themed ‘Innovating for Disruption: Building Systems and Ethos,’ also featured Ekerete Gam-Ikon, deputy commissioner for insurance (finance and administration) at the National Insurance Commission (NAICOM).

Others were Tunde Mimiko, MD of Sanlam Allianz Life Insurance Nigeria; Stephen Alangbo, MD of Cornerstone Insurance; and Olamilekan Oyinlade, MD of Temple General Insurance Limited.

The session was moderated by Adetola Adegbayi, founder of Mutual Specialists.

He urged colleagues across the industry to evolve, acquire new skills, and adapt to the disruptions shaping the future of insurance.

Akerele explained the differences between the insurance sector and industries like manufacturing, healthcare, and hospitality, which he said have been radically reshaped by technology.

He said the insurance industry cannot remain an exception to technological disruption, citing examples like robotics in manufacturing and AI-powered diagnostic tools in healthcare.

“Innovation has come to stay. The disruptions we are witnessing are not threats; they are opportunities,” he said.

“They allow us to learn new skills, embrace AI-driven tools, and deliver services that are faster, smarter, and more delightful for customers.

“Regulators, through the Nigerian Insurance Industry Reform Act (NIIRA), have already sent the right signals that digitalisation is not optional, businesses must scale.”

‘TECHNOLOGY ADOPTION ABOUT WHOLESALE TRANSFORMATION’

Akerele stressed that technology adoption is no longer about incremental improvements but about wholesale transformation.

He pointed to global disruptions such as Netflix replacing video rental chains, Airbnb reshaping hospitality, and Uber redefining mobility as clear examples of how industries that fail to adapt quickly lose relevance.

“In insurance, we need a complete mindset shift. Incremental improvements are not enough; we must embrace disruptive thinking. If we do not evolve, we will face extinction,” the MD said.

“But if we innovate boldly, the opportunities before us are enormous. With over 230 million people in Nigeria and a penetration still below 1% of GDP, the gap to be filled is huge.

“The future of insurance will be defined by how well we adapt, collaborate with fintechs, and deploy platforms that truly meet customer lifestyles.”

On his part, Gam-Ikon emphasised that innovation in the insurance industry should be defined by its impact on customer experience, rather than technology alone.

The NAICOM deputy commissioner said the biggest challenge lies in the interactions between customers and insurers.

“Whether you call it innovation or DNA, what will really shake the foundations of our industry is experience,” he said.

“What are customers experiencing today? Frankly, very little. We sit in our offices, design products we believe customers need, yet their awareness remains low.

“And for those who have taken the bold step to buy insurance, their experiences have often been disappointing. That is the true gap.”

Gam-Ikon added that innovation must be about changing the experience, doing things differently or improving on what already exists, in ways that restore trust and delight the customer.