Leadway vs. AIICO: A Review of their Digital Strategies in a Low-Penetration Insurance Market

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In the insurance sector, gone are the days when branches had to wait for customers to walk in to buy a policy or file a claim. 

Companies that want to stay resilient are adapting fast, and two of Nigeria’s oldest and most trusted insurers, Leadway Assurance and AIICO Insurance Plc, are scaling up without losing focus.

In a country where insurance penetration is under 2%, these two industry giants are working alongside other innovators in the sector to ensure the gap is bridged.

Leadway has been around since 1970, and AIICO since 1963. Both have weathered Nigeria’s unstable economic cycles and regulatory instability. But now, digitisation is taking over, the industry is facing total disruption from mobile penetration, changing consumer expectations, and pressure to reduce costs of operations. 

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It’s interesting to look closely at how both firms are adapting, where they’re focusing, and how well they’re delivering on customer expectations in this new phase. So, let’s do that:

Company Overview

Leadway Assurance is a private, family-founded company that has built a reputation for dependable service. It offers a wide range of insurance products, life, general, motor, health, and has expanded into pensions and asset management. Over time, it’s developed strong partnerships and a solid distribution model that includes brokers, agents, and digital platforms.

AIICO Insurance Plc, on the other hand, is publicly listed. Its roots are in life insurance, but it now operates across retail and corporate segments with products in general insurance, pensions, health, and investments. Unlike Leadway, it’s accountable to shareholders, which may influence its speed of innovation, but it stands as one of the most financially solid insurers in the country.

Market Focus and Services

Both companies have broad portfolios, but they’ve taken slightly different paths.

• Leadway has a stronger hold in motor insurance, health, and agricultural insurance. It also offers estate planning and microinsurance products aimed at individuals and small businesses.
• AIICO is seen more in life insurance and retirement planning. It also has strong partnerships with corporate clients, particularly in oil and gas, and offers group life insurance and pensions.

Both have pension subsidiaries: Leadway Pensure and AIICO Pension Managers. These arms manage thousands of Retirement Savings Accounts (RSAs), but Leadway’s approach has been more aggressive in digital outreach, while AIICO has leaned on regulatory compliance and steady growth.

Claims and Customer Experience

When it comes to claims, what most people care about, Leadway leads by example. In 2023 alone, the company paid out over ₦67.1 billion in claims. It has consistently ranked as one of the top claim payers in Nigeria over the last five years. That level of consistency matters. In a market where trust is thin, the ability to settle claims promptly sets you apart.

AIICO, while not disclosing its total claims for 2023, reported a profit after tax of ₦12.02 billion in the same year. That figure speaks to strong financial management, but it doesn’t necessarily tell us how quickly or easily customers get paid. Nonetheless, customer feedback reveals that AIICO has made solid improvements in this area, especially through digital self-service tools.

Digital Shift

Now, let’s talk about what really matters in this phase of change, digital adaptation. Both companies are no longer operating in a paper-heavy world, but their approaches differ.

Leadway has taken steps towards simplifying insurance. It introduced LOLA, a chatbot that helps customers buy insurance, track claims, and get support online. It also launched VehiScanner, a tool that lets users assess car damage with their phone camera. More importantly, it partnered with Octamile to provide flexible motor insurance payment plans, which helps address affordability, a major issue in Nigeria.

AIICO has also upgraded. Its mobile app and online portal allow users to buy policies, file claims, and view policy status. It recently partnered with ETAP, a platform that rewards good driving with lower premiums. This step indicates AIICO is ready to personalise pricing, a model that has seen success abroad.

Financial Strength

Here’s a quick financial snapshot:

What these numbers show is that both are strong, but in different ways. Leadway tops in claims servicing and premium volume, while AIICO is focused on efficient profit management and sustainable growth.

Health Insurance Segment

Another space where competition is rising is health insurance. Nigeria’s public health infrastructure is weak, and HMOs (Health Maintenance Organisations) are stepping in.

Leadway Health, a newer subsidiary, is building digital-first health plans. It provides virtual consultations, digital prescriptions, and customised wellness programmes. Its app allows users to manage benefits and speak with doctors remotely.

AIICO offers health insurance through NHIS-accredited plans. It hasn’t created a separate HMO arm yet, but its health plans are part of its insurance suite and target both individuals and corporates.

In terms of depth and digital readiness, Leadway appears to be ahead in this area.

Challenges and Risks

There’s no shortage of obstacles.

• Penetration is still low: With insurance penetration below 2%, both firms are fishing in shallow waters. Public awareness remains poor, and many still see insurance as a luxury.
• Economic challenges: High inflation, job losses, and currency instability mean fewer people can afford regular premiums.
• Trust issues: The industry still suffers from a trust deficit, especially in rural areas and among low-income earners.

However, even with the issues, digital access is growing, and both firms are using that as a path forward.

Finally?

It’s not a matter of who’s better, but who is doing what better.

• If you want a provider that’s leading with speed, innovation, and user experience, Leadway is clearly ahead.
• If you value financial consistency, corporate reputation, and structured expansion, AIICO has a solid case.

Leadway seems more aggressive in its modernisation efforts, while AIICO is more measured but stable. From a consumer’s point of view, both are viable and dependable. From a competitive standpoint, Leadway is pushing harder to define the next phase of insurance in Nigeria.

Insurance in Nigeria is at a turning point and companies like Leadway and AIICO are adjusting. But success won’t be defined by who has been around the longest, it will depend on who listens to the customer, who simplifies the process, and who makes insurance feel less like a burden and more like a necessity.

At Techeconomy, we believe brand comparisons like this help users and decision-makers see through the noise. In a market with huge potential and still not leveraged as well as it should, the clearer and faster you move, the more relevant you become.

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