Report Overview

Nigeria Insurance Market – Industry Trends & Forecast Report, 2031

Nigeria Insurance Market size was estimated at USD 7.35 billion in 2024. During the forecast period from 2025 to 2031, Nigeria Insurance Market size is projected to grow at a CAGR of 2.50%, reaching a value of USD 8.74 billion by 2031. The growth of Insurance Market in Nigeria is driven by a growing middle class, rapid urbanization, and rising awareness of financial protection. Regulatory reforms and compulsory insurance mandates have boosted market participation. Digital transformation, mobile penetration, and fintech collaborations are expanding access and efficiency. Economic diversification and infrastructure development are creating new insurable assets. Additionally, microinsurance is gaining traction among underserved populations. These factors, combined with improved distribution channels and government initiatives, are fostering a more inclusive and dynamic insurance ecosystem across Nigeria.

Insurance – Overview

Insurance is a financial tool that protects against unforeseen risks and losses. It works by pooling premiums from individuals or businesses to compensate for covered events like accidents, illness, or property damage. Common types include life, health, auto, and property insurance. By transferring risk to insurers, policyholders gain financial security and peace of mind. Insurance also supports economic stability by enabling recovery from losses and encouraging investment. It plays a vital role in both personal and commercial risk management.

Nigeria Insurance Market 

Growth Drivers

Rising Middle Class Income and Urbanization

Expanding middle class and rapid urbanization across Nigeria are fueling demand for insurance products. As disposable incomes rise and more citizens migrate to urban centers, awareness of financial protection grows. Urban dwellers are more likely to seek coverage for health, property, and life risks. This demographic shift also supports digital insurance adoption, enabling broader market reach. The evolving lifestyle and asset accumulation patterns of the middle class are transforming insurance from a luxury into a perceived necessity. These trends are driving Nigeria Insurance Market.

Challenges

Low Public Awareness and Financial Literacy

The limited public understanding of insurance products and financial concepts could restrain the growth of Nigeria Insurance Market. Many Nigerians lack awareness about the benefits and mechanisms of insurance, leading to low participation and trust. This gap is more pronounced in rural areas and among low-income groups. Without targeted financial education and awareness campaigns, consumers remain disengaged, hindering market penetration and growth. Strengthening financial literacy is essential for fostering informed decision-making and boosting insurance uptake.

Impact of Escalating Geopolitical Tensions on Nigeria Insurance Market 

Escalating geopolitical tensions are heightening risks across Nigeria Insurance Market. Disruptions in global trade and supply chains are increasing claims in marine, aviation, and property insurance. Rising oil prices and imported inflation are inflating operational costs and premiums. Reinsurance markets are tightening, leading to higher costs and reduced capacity. Capital market volatility threatens insurers’ investment portfolios and solvency margins. Additionally, demand for political risk, terrorism, and business interruption coverage is rising, pushing insurers to recalibrate underwriting strategies and risk models.

Nigeria Insurance Market 

Segmental Coverage

Nigeria Insurance Market – By Life Insurance

By life insurance, Nigeria Insurance Market is divided into Individual Life Insurance, Group Life Insurance, and Annuities segments. The individual life insurance segment accounts for the largest share of gross written premiums, due to growing awareness about personal financial protection, rising middle-class income, and growing demand for tailored coverage. Individual policies offer flexibility and long-term savings, making them attractive to a broad customer base. Its continued growth is supported by digital distribution channels, evolving consumer preferences, and regulatory support aimed at deepening insurance penetration across Nigeria’s diverse population

Nigeria Insurance Market – By Non-life Insurance

Based on non-life insurance, Nigeria Insurance Market is divided into Motor Insurance, Fire & Property Insurance, Marine, Aviation, and Transit (MAT) Insurance, and General Accident Insurance segments. The fire & property insurance segment is the largest non-life insurance segment in Nigeria Insurance Market. The segment’s market dominance is fueled by increasing infrastructure development, regulatory enforcement, and rising asset protection awareness. The fire and property insurance remains the most significant, due to its broad applicability across the commercial and residential sectors.

Nigeria Insurance Market – By Reinsurance

On the basis of reinsurance, Nigeria Insurance Market is divided into Facultative Reinsurance, Treaty Reinsurance, and Life & Non-Life Reinsurance segments. The treaty reinsurance segment is the largest in Nigeria Insurance Market by reinsurance. The dominance is driven by its structured risk-sharing and long-term agreements. It offers insurers consistent coverage across portfolios, enhancing capital efficiency and underwriting capacity. Treaty Reinsurance is especially favored for its predictability and administrative ease compared to facultative arrangements. As Nigeria’s insurance sector expands, insurers increasingly rely on treaty arrangements to manage growing and complex risk pools. This segment continues to dominate due to its scalability, cost-effectiveness, and alignment with regulatory capital requirements.

Competitive Landscape

Major companies operating in Nigeria Insurance Market include 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Life Insurance

• Individual Life Insurance

• Group Life Insurance

• Annuities

By Non-Life (General) Insurance

• Motor Insurance

• Fire and Property Insurance

• Marine, Aviation & Transit (MAT) Insurance

• General Accident Insurance

By Reinsurance

• Facultative Reinsurance

• Treaty Reinsurance

• Life and Non-Life Reinsurance  

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Nigeria Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising middle-class income and urbanization
         2. Regulatory push for compulsory insurance schemes
         3. Expansion of digital and mobile insurance platforms
      2. Restraints
         1. Low public awareness and financial literacy
         2. Weak enforcement of mandatory insurance policies
         3. Limited trust in insurers due to past claim disputes  
      3. Opportunities
         1. Microinsurance for informal and underserved sectors
         2. Strategic partnerships with fintech and telecom providers
      4. Challenges
         1. Fragmented market with undercapitalized players
         2. Cultural and religious perceptions hindering adoption
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Nigeria Insurance Market: Marketing Strategies
5. Nigeria Insurance Market: Pricing Analysis
6. Nigeria Insurance Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Life Insurance
         1. Individual Life Insurance
         2. Group Life Insurance
         3. Annuities
      2. By Non-Life (General) Insurance
         1. Motor Insurance
         2. Fire and Property Insurance
         3. Marine, Aviation & Transit (MAT) Insurance
         4. General Accident Insurance
      3. By Reinsurance
         1. Facultative Reinsurance
         2. Treaty Reinsurance
         3. Life and Non-Life Reinsurance  
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Nigeria Insurance Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Nigeria Insurance Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Leadway Assurance Company Ltd
   2. AIICO Insurance Plc
   3. Custodian and Allied Insurance Plc
   4. AXA Mansard Insurance Plc
   5. Cornerstone Insurance Plc
   6. FBN Insurance Ltd
   7. Lasaco Assurance Plc
   8. NEM Insurance Plc
   9. Mutual Benefits Assurance Plc
   10. Sovereign Trust Insurance Plc
   11. Industrial and General Insurance Plc
   12. Other Prominent Players 
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Nigeria Insurance Segmentation

Figure 2       Nigeria Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       Nigeria Insurance Market Size, By Value (USD Million), 2019–2031

Figure 5       Nigeria Insurance Market Share, By Life Insurance, By Value, 2019–2031

Figure 6       Nigeria Insurance Market Share, By Non-life Insurance, By Value, 2019–2031

Figure 7       Nigeria Insurance Market Share, By Reinsurance, By Value, 2019–2031

List of Tables

Table 1        Nigeria Insurance Market Size, By Value (USD Million), 2019–2031

Table 2        Nigeria Insurance Market Size, By Life Insurance, By Value, 2019–2031

Table 3        Nigeria Insurance Market Size, By Non-life Insurance, By Value, 2019–2031

Table 4        Nigeria Insurance Market Size, By Reinsurance, By Value, 2019–2031

Table 6 Leadway Assurance Company Ltd Company Overview

Table 7 Leadway Assurance Company Ltd Financial Overview

Table 8 AIICO Insurance Plc Company Overview

Table 9 AIICO Insurance Plc Financial Overview

Table 10 Custodian and Allied Insurance Plc Company Overview

Table 11 Custodian and Allied Insurance Plc Financial Overview

Table 12 AXA Mansard Insurance Plc Company Overview

Table 13 AXA Mansard Insurance Plc Financial Overview

Table 14 Cornerstone Insurance Plc Company Overview

Table 15 Cornerstone Insurance Plc Financial Overview

Table 16 FBN Insurance Ltd Company Overview

Table 17 FBN Insurance Ltd Financial Overview

Table 18 Lasaco Assurance Plc Company Overview

Table 19 Lasaco Assurance Plc Financial Overview

Table 20 NEM Insurance Plc Company Overview

Table 21 NEM Insurance Plc Financial Overview

Table 22 Mutual Benefits Assurance Plc Company Overview

Table 23 Mutual Benefits Assurance Plc Financial Overview

Table 24 Sovereign Trust Insurance Plc Company Overview

Table 25 Sovereign Trust Insurance Plc Financial Overview

Table 26 Industrial and General Insurance Plc Company Overview

Table 27 Industrial and General Insurance Plc Financial Overview