Nigeria Insurance Market Size Set to Touch USD 8.74 Billion by 2031

Published | 04 July 2025

Nigeria Insurance Market is expanding at a steady growth rate, primarily due to reforms, digitalization, rising incomes, and expanding demand across life and non-life segments.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Nigeria Insurance Market size by value at USD 7.35 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Nigeria Insurance Market size to grow at a steady CAGR of 2.50%, reaching a value of USD 8.74 billion by 2031. The Insurance Market in Nigeria is driven by a rising middle class, urbanization, and increasing awareness of financial protection. Regulatory reforms by NAICOM, including compulsory insurance policies, are enhancing compliance and market confidence. Digital transformation and mobile penetration are expanding access, especially through InsurTech and fintech partnerships. Economic diversification across agriculture, infrastructure, and SMEs is creating new insurable assets. Microinsurance is gaining traction among underserved populations, while improved distribution channels and financial literacy campaigns are fostering broader participation. Together, these factors are reshaping the insurance landscape, making it more inclusive, technology-driven, and responsive to Nigeria’s evolving socio-economic dynamics.

Opportunity – Microinsurance for Informal and Underserved Sectors

Microinsurance is emerging as a significant growth driver for Nigeria Insurance Market by targeting low-income and informal sector populations. With over 80 million Nigerians working outside the formal economy, demand for affordable, accessible coverage is rising. Microinsurance products offer simplified terms, low premiums, and flexible delivery through mobile platforms, cooperatives, and microfinance institutions. Regulatory support from NAICOM and growing fintech partnerships are accelerating adoption. This segment expands financial inclusion and also builds resilience among vulnerable groups, positioning microinsurance as a key catalyst for deepening insurance penetration and fostering equitable growth across Nigeria’s socio-economic spectrum.

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Fire and Property Insurance Segment Leads Nigeria Market​

The fire and property insurance segment is the largest in Nigeria’s non-life insurance market. This segment’s dominance is fueled by increased infrastructure development, commercial real estate investments, and stricter regulatory enforcement on asset protection. Businesses and individuals alike are prioritizing coverage for buildings, equipment, and inventory, driving sustained demand. While motor insurance, marine, aviation, and transit (MAT) insurance, and general accident insurance contribute follow fire and property insurance segment in Nigeria non-life insurance portfolio.

Impact of Escalating Geopolitical Tensions on Nigeria Insurance Market

Escalating geopolitical tensions are reshaping Nigeria Insurance Market by increasing operational risks and premium volatility. Rising global oil prices and disrupted trade routes are inflating claims in marine, aviation, and logistics insurance. Reinsurance costs are surging due to heightened global uncertainty, straining local insurers’ capacity. Capital market instability threatens investment portfolios, impacting solvency margins. Additionally, demand is rising for political risk, terrorism, and business interruption coverage. These dynamics are forcing Nigerian insurers to recalibrate underwriting strategies, adopt advanced risk models, and explore new products to remain resilient amid shifting global risk patterns.

Competitive Landscape

Nigeria Insurance Market is highly fragmented, with numerous players serving the market. Major companies dominating the market including Leadway Assurance Company Ltd, AIICO Insurance Plc, Custodian and Allied Insurance Plc, AXA Mansard Insurance Plc, Cornerstone Insurance Plc, FBN Insurance Ltd, Lasaco Assurance Plc, NEM Insurance Plc, Mutual Benefits Assurance Plc, Sovereign Trust Insurance Plc, and Industrial and General Insurance Plc. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in Nigeria Insurance Market.

Don’t miss the business opportunity in Nigeria Insurance Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Nigeria Insurance Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Nigeria Insurance Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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