Report Overview

Nigeria Motor Insurance Market – Industry Trends & Forecast Report, 2031

Nigeria Motor Insurance Market size was estimated at USD 1.08 billion in 2024. During the forecast period from 2025 to 2031, Nigeria Motor Insurance Market size is projected to expand at a CAGR of 7.65%, reaching a value of USD 1.82 billion by 2031. The growth of Motor Insurance Market in Nigeria is driven by rising vehicle ownership, stricter enforcement of mandatory insurance laws, and increasing road accident rates. Economic growth and expanding middle-class income levels boost demand for vehicle protection. Digital platforms and mobile apps enhance accessibility and policy management. Telematics and usage-based insurance models are gaining traction, encouraging safer driving. Additionally, growing consumer awareness, regulatory reforms, and partnerships between insurers and automakers contribute to market expansion and innovation in coverage options tailored to diverse vehicle types.

Motor Insurance – Overview

Motor insurance is a mandatory policy that offers financial protection against losses arising from accidents, theft, or damage to motor vehicles. It covers various vehicle types—cars, bikes, and commercial vehicles—and includes third-party liability and own-damage coverage. Comprehensive plans may also include add-ons like zero depreciation or roadside assistance. By ensuring legal compliance and safeguarding against unforeseen events, motor insurance provides peace of mind to vehicle owners while promoting responsible driving and road safety across personal and commercial transportation sectors.

Nigeria Motor Insurance Market 

Growth Drivers

Rising Vehicle Population and Urban Mobility Demand

Nigeria’s expanding urban centers and growing middle class are fueling a surge in vehicle ownership, intensifying the demand for motor insurance. As more individuals rely on personal and commercial vehicles for daily mobility, insurers are witnessing increased policy uptake. Urbanization also brings higher traffic density and accident risks, prompting consumers to seek financial protection. This trend, coupled with regulatory enforcement of mandatory insurance, is driving consistent growth in Nigeria Motor Insurance Market across both individual and fleet segments.

Challenges

Low Consumer Trust and Awareness

Low consumer trust and limited awareness could significantly hinder the growth of Nigeria Motor Insurance Market. Many Nigerians perceive insurers as unreliable due to delayed or denied claims, while widespread misinformation and lack of education about insurance benefits reduce policy uptake. The prevalence of fake insurance providers further erodes confidence. Without targeted awareness campaigns, transparent claims processes, and regulatory enforcement, consumer skepticism will persist, limiting the market’s potential despite increasing vehicle ownership and regulatory mandates.

Impact of Escalating Geopolitical Tensions on Nigeria Motor Insurance Market 

Intensifying geopolitical tensions among countries across the regions, particularly in the Middle East, are disrupting global supply chains, inflating fuel prices, and increasing vehicle repair costs. Consequently, escalating geopolitical tensions could affect the growth of Nigeria Motor Insurance Market. Increasing tensions could translate into higher claims, premium volatility, and reinsurance repricing. Imported inflation strains underwriting margins, while capital market instability threatens insurers’ solvency. However, demand for specialized coverage like political violence and business interruption is growing. Insurers must adapt swiftly with digital innovation, risk-based pricing, and resilient investment strategies to navigate this volatile landscape.

Nigeria Motor Insurance Market 

Segmental Coverage

Nigeria Motor Insurance Market – By Type of Coverage

By type of coverage, Nigeria Motor Insurance Market is divided into Third-Party Insurance, Comprehensive Insurance, and Other Specialized Motor Policies segments. The third-party insurance segment holds the largest market share of Nigeria Motor Insurance Market by type of coverage. This dominance stems from its legal mandate under Nigerian law, requiring all vehicle owners to carry at least third-party coverage to operate on public roads. It offers basic protection against liabilities for injuries or damages to others, making it the most accessible and affordable option for the majority of motorists. Despite its limited coverage compared to comprehensive policies, its widespread adoption, especially among private and commercial vehicle owners, continues to drive its market share and reinforce its position as the leading segment.

Nigeria Motor Insurance Market – By Vehicle Type

Based on vehicle type, Nigeria Motor Insurance Market is divided into Private Vehicles, Commercial Vehicles, Two-Wheelers, and Fleet & Logistics Vehicles segments. The private vehicles segment represents the largest vehicle type in Nigeria Motor Insurance Market. This dominance is driven by the country’s growing middle class, increasing urbanization, and rising personal vehicle ownership. As more Nigerians purchase cars for daily commuting and family use, demand for insurance coverage, especially third-party policies mandated by law, has surged. Private vehicle owners are also more likely to opt for comprehensive plans to protect against theft, accidents, and natural disasters. The accessibility of digital insurance platforms and flexible premium options further supports this segment’s growth, making it the most significant contributor to the market’s overall volume and revenue.

Nigeria Motor Insurance Market – By Distribution Channel

Nigeria Motor Insurance Market by distribution channel is divided into Agency, Banks, Brokers, and Digital Platforms segments. The brokers segment dominates Nigeria’s motor insurance distribution landscape, particularly in the corporate and commercial vehicle segments. Their deep market knowledge, personalized advisory services, and ability to offer policies from multiple insurers make them the preferred channel for businesses seeking tailored coverage. Brokers account for a significant share of premium volumes, especially in fleet and logistics insurance. Their established relationships with underwriters and clients foster trust and policy retention. While digital platforms are gaining traction among retail customers, brokers remain the largest and most influential distribution channel, driving growth through consultative selling and comprehensive risk management solutions.

Competitive Landscape

Major companies operating in Nigeria Motor Insurance Market include Leadway Assurance Company Ltd, AIICO Insurance Plc, AXA Mansard Insurance Plc, Custodian and Allied Insurance Plc, NEM Insurance Plc, Mutual Benefits Assurance Plc, Cornerstone Insurance Plc, Sovereign Trust Insurance Plc, Lasaco Assurance Plc, Industrial and General Insurance Plc, and Universal 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 Type of Coverage

• • Third-Party Insurance

  • Comprehensive Insurance

  • Other Specialized Motor Policies

By Vehicle Type

• • Private Vehicles

  • Commercial Vehicles

  • Two-Wheelers

  • Fleet and Logistics Vehicles

By Distribution Channel

• • Agency

  • Banks

  • Brokers

  • Digital Platforms

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Nigeria Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising vehicle population and urban mobility demand
         2. Regulatory mandates for third-party motor insurance
         3. Emergence of InsurTech and telematics-based pricing  
      2. Restraints
         1. Prevalence of fake insurance certificates
         2. Low consumer trust and awareness
         3. Weak enforcement of compliance in rural areas  
      3. Opportunities
         1. Pay-as-you-go and usage-based insurance models
         2. Strategic partnerships with auto dealers and fintech platforms
      4. Challenges
         1. High rate of road accidents and fraudulent claims
         2. Inadequate claims infrastructure and customer service systems
   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 Motor Insurance Market: Marketing Strategies
5. Nigeria Motor Insurance Market: Pricing Analysis
6. Nigeria Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type of Coverage
         1. Third-Party Insurance
         2. Comprehensive Insurance
         3. Other Specialized Motor Policies
      2. By Vehicle Type
         1. Private Vehicles
         2. Commercial Vehicles
         3. Two-Wheelers
         4. Fleet and Logistics Vehicles
      3. By Distribution Channel
         1. Agency
         2. Banks
         3. Brokers
         4. Digital Platforms
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Nigeria Motor Insurance Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tension on Nigeria Motor Insurance Market
9. Company Profile (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. AXA Mansard Insurance Plc
   4. Custodian and Allied Insurance Plc
   5. NEM Insurance Plc
   6. Mutual Benefits Assurance Plc
   7. Cornerstone Insurance Plc
   8. Sovereign Trust Insurance Plc
   9. Lasaco Assurance Plc
   10. Industrial and General Insurance Plc
   11. Universal Insurance Plc
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 Motor Insurance Segmentation

Figure 2       Nigeria Motor Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

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

Figure 5       Nigeria Motor Insurance Market Share, By Type of Coverage, By Value, 2019–2031

Figure 6       Nigeria Motor Insurance Market Share, By Vehicle Type, By Value, 2019–2031

Figure 7       Nigeria Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2031

List of Tables

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

Table 2        Nigeria Motor Insurance Market Size, By Type of Coverage, By Value, 2019–2031

Table 3        Nigeria Motor Insurance Market Size, By Vehicle Type, By Value, 2019–2031

Table 4        Nigeria Motor Insurance Market Size, By Distribution Channel, By Value, 2019–2031

Table 5        Nigeria Motor Insurance Market Size, 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 AXA Mansard Insurance Plc Company Overview

Table 11 AXA Mansard Insurance Plc Financial Overview

Table 12 Custodian and Allied Insurance Plc Company Overview

Table 13 Custodian and Allied Insurance Plc Financial Overview

Table 14 NEM Insurance Plc Company Overview

Table 15 NEM Insurance Plc Financial Overview

Table 16 Mutual Benefits Assurance Plc Company Overview

Table 17 Mutual Benefits Assurance Plc Financial Overview

Table 18 Cornerstone Insurance Plc Company Overview

Table 19 Cornerstone Insurance Plc Financial Overview

Table 20 Sovereign Trust Insurance Plc Company Overview

Table 21 Sovereign Trust Insurance Plc Financial Overview

Table 22 Lasaco Assurance Plc Company Overview

Table 23 Lasaco Assurance Plc Financial Overview

Table 24 Industrial and General Insurance Plc Company Overview

Table 25 Industrial and General Insurance Plc Financial Overview

Table 26 Universal Insurance Plc Company Overview

Table 27 Universal Insurance Plc Financial Overview