But when the cash scarcity hit my sister, my mother too couldn’t get cash, even from her petty trade.

 A few weeks into the crisis, she called to say that she had opened an Opay account and could now receive funds from us and her customers via transfer to her new account, and she could pay her suppliers via the same app.

I have used this story to illustrate various aspects of customer-market fitness, the distinction between financial literacy and education, and the role of tech as an accelerator rather than a business model.

But after reading Harvard Professor Clayton Christensen’s management classic, “The Innovator’s Dilemma”, late last year, Opay and my mother’s encounter became more than a story; it became another framework in my toolkit of appraising changes in the market.

 Through this lens, I intend to use Christensen’s disruptive principles to interrogate why and how incumbent insurance companies might be disrupted by new technologies from startups, existing insurers, or from adjacent sectors like telecos, banking, fintech, etc.

Of NIIRA and an industry ripe for disruption

The Nigerian Insurance Industry Reform Act (NIIRA) has been hailed by industry stakeholders and watchers. The National Insurance Commission (NAICOM) describes it as a catalyst for growth, while the Nigeria Insurers Association (NIA) welcomed it as a bold step in modernising the industry’s operations. But behind these accolades is a revving disruptive engine – the Official Guidelines for Insurtech Operators in Nigeria.

 It is no news that Nigeria’s insurance penetration lags South Africa’s 11.54%, Namibia’s 7.41%, Morocco’s 4.10%, Kenya’s 2.25%, and the global average of 6.8%.

For me, this abysmal penetration rate is partly a product of Nigeria’s economic structure, where 90% of the workforce is employed in the informal sector.

Yet, insurance products remain complex, expensive, and exclude more than 100 million adults, according to EFInA report. The report also furthered that an estimated 96.4% of surveyed Nigerian businesses have no insurance, yet micro-enterprises make up more than 70% of Nigeria’s GDP.

Put simply, millions of Nigerians and businesses are just one accident or disaster away from financial  ruin, and have no hope of a comeback except for families, friends, faith, and vibes. This probably explains why the InsureTech guidelines lean strongly towards retail and personal lines insurance.

Learning from the banking sector, blind spots incumbent Insurers must watch

Christensen’s theory of disruptive innovation explains that industry leaders are most vulnerable when disruptors target non-consumers (people who are not using existing products because they are too expensive, inconvenient, or complicated).

He explains that the disruptors enter with a simple, low-margin product that meets the basic needs of these overlooked customers. Over time, the product improves, and the disruptor moves upmarket.

Before and during the cash crisis, many Nigerians, like my mother, were ignored by the traditional banks because they chose to focus on mainstream customers.

So rather than competing head-to-head with legacy banks, Opay went after the Nigerians like my mother, whom incumbent banks aren’t serving effectively. Opay built a “good enough” digital infrastructure and agent network to enter from the bottom.

As with Nigeria’s banking sector, incumbent companies do not miss disruptive waves because they are badly managed businesses; they miss them because of several factors that are beyond their control. Drawing from Christensen’s research, here are reasons legacy insurers will be disrupted:

1. Companies depend on customers and investors for resources: While many have praised the new industry’s capital requirements, pressure to meet up is likely to tilt legacy insurers towards impressing investors with large policies, not the black box of micro covers.

On the other hand, disruptors don’t have existing customers; they are farming for them so they can attract investors.

 2. So, all markets don’t solve the growth needs of large companies: The size of the untapped informal sector and micro businesses, is seductively tempting but for growth targets to maintain share price and create opportunities for their employees, insurers need policies with high sums assured, which are largely domiciled with corporates and high-net-worth individuals. Incumbent insurers are therefore likely to innovate around compulsory policies rather than micro insurance.

3. Markets that don’t exist can’t be analysed: Current insurers’ RPVs (Resource Processes and Values) are designed to be based on sound market research because the size and growth rate are generally known.

In contrast, there is a lack of known data to forecast on in Nigeria’s non-consumption insurance market. On the other hand, because disruptors don’t carry the pressures industry leaders carry, they can define and structure the market as they move on.

4. An organisation’s capabilities define its disabilities: While there have been some interactions with digital distribution, Nigeria’s legacy insurers are primarily dependent on traditional distribution channels (brokers, agents, and corporate clients) and complex underwriting processes.

These structures make serving low-margin customers costly and unattractive. Disruptors have the advantage of designing new value networks for this market without upsetting the economics of brokers and agents. 

Like Opay, Insurance disruptors will also move upmarket

With over 50 million users, 1 million merchants, and transaction volumes surpassing $12 billion, Opay (like other prominent disruptor-fintechs) is now challenging traditional banks in the mainstream segment. They are now providing conventional banking services.

This is classic disruptive innovation: start with a “good enough” product for people ignored by incumbents, then improve and expand to compete with incumbents. Whether these disruptors will displace incumbent banks will be the ultimate test of the disruptive theory in Nigeria.

Faced with this type of reality, it may be tempting for legacy insurers to pander to Jim Collins’ “Genius of the ‘And’” philosophy, that is, growing their mainstream markets and exploring new ones at the same time. Only that research didn’t back up that approach.

According to Christensen, while it is easier for incumbents to acquire resources to explore new markets, it is more challenging to align established processes and values of large organisations to explore unknown, small markets.

He therefore suggested matching the size of the organisations to the size of the markets – an approach that most traditional Nigerian banks had to learn the hard way, but consequently midwifed spin-off fintech arms, Payment Service Banks (PSBs) and Agency Banking.

We can’t stop the disruption, but we can ensure it impacts real people in the real economy.

Because of Opay, millions of people like my mother are financially included today. Insurance disruption can also have the same effect.

The NIA has demonstrated readiness to welcome the possibilities with the recent launch of the Innovation Lab. So, the article is not about stopping disruption from happening.

It is about situating NIIRA, identifying potential pitfalls for incumbents and disruptors, and ensuring that, through their works, insurance contribution to Nigeria’s GDP grows and their effects are evident in the lives of every Nigerian.

The announcement comes at a time when reforms in Nigeria’s insurance industry are changing the market and opening up opportunities for digital-first players.

Oreagba steps into the role with more than 17 years of leadership experience in corporate risk management, financial planning, and operational transformation. 

She has held senior positions across energy, aviation, and infrastructure, including her most recent role as General Manager, Fulfilment and Corporate Services at Viathan Group.

At Casava, her focus will be on scaling processes, strengthening operations, and preparing the company for rapid growth under the new insurance framework.

“The future of insurance is not just about technology; it’s about building operational resilience that can adapt to rapid market changes and consumer needs,” said Bode Pedro, founder and chief executive of Casava. 

“Solabomi’s expertise in streamlining complex systems and her deep understanding of business transformation are precisely what we need to scale our mission. Her leadership will be instrumental in not only managing our growth but in defining the operational gold standard for the African insurtech landscape.”

President Tinubu Signs Insurance Reform (NIIRA) Bill 2025

Her arrival coincides with the signing of the Nigeria Insurance Industry Reform Act (NIIRA) 2025, a law that consolidates outdated regulations and pushes the industry into a new growth era. 

The legislation raises capital requirements, mandates insurance coverage for sectors like agriculture, SMEs, and cyber liability, and requires insurers to digitise licensing, claims, and reporting. Analysts project the market will expand from ₦2.2 trillion today to nearly ₦8 trillion by 2030.

For Casava, a pioneer of subscription-based insurance that delivers health, income protection, and life policies directly via mobile platforms, the timing is strategic. 

The company’s API-driven onboarding process allows Nigerians to secure cover within minutes, a feature that aligns directly with the NIIRA 2025 digital-first mandate. With insurance penetration in Nigeria still under 3%, the reforms present fertile ground for Casava to expand aggressively.

“I have always believed that true innovation is only as effective as the operational foundation that supports it,” said Oreagba. “I am honoured to join Casava, a company that is not only revolutionising the insurance industry but is also making a tangible difference in the lives of everyday Nigerians.

“My focus will be on building scalable processes and fostering a culture of continuous improvement, ensuring that we can deliver on our promise of accessible and delightful insurance experiences as we enter this next phase of hyper-growth.”

Casava’s investors, including Enza Capital and Techstars, have backed its inclusive approach, which has already earned it a place in global insurtech rankings.

With the regulatory changes now in force, the company is positioned to push further into compulsory insurance categories, expand partnerships with telcos and digital banks, and serve the growing gig and informal economy.

The National Insurance Commission (NAICOM) has pledged tough enforcement of the new law, including digitisation across the value chain, faster claims resolution, and tougher penalties for unregistered agents. Industry analysts anticipate mergers, foreign capital inflows, and deeper regional integration through frameworks such as the ECOWAS Brown Card System.

The appointment of Solabomi Oreagba by Casava is the company’s aim to anchor its operational structure ahead of the sector’s transformation. Her mandate will be to ensure the company is well positioned for growth and resilient enough to change the standard for the market’s sustainable.

Following a successful rollout to key industry stakeholders, the mobile application is now available for download on the Google Play Store and Apple App Store for both Android and iOS users.

InsurEase allows customers to purchase a variety of insurance policies, health, device, motor, and travel directly from their smartphones. Designed with user convenience in mind, the app offers a seamless, user-friendly experience, enabling users to explore, compare, and secure coverage in just a few taps.

Transparency Scape aims to empower customers with access to affordable, reliable, and convenient insurance policies while giving them the flexibility to choose from a wide range of offerings from top-tier insurance providers. 

These partners include AXA Mansard Insurance Plc., NEM Insurance Plc., Leadway Assurance Company Limited, Coronation Insurance Plc., Cornerstone Insurance Plc., Consolidated Hallmark Insurance Plc, Bastion HMO, and Tangerine Africa. The app is also integrated with trusted payment gateways Paystack and Budpay to ensure smooth and secure transactions.

“We are thrilled to officially go live,” said Oluseyi Ifaturoti, managing director and CEO of Transparency Scape. “Reaching this milestone has been a journey of perseverance, and we are excited to offer our customers peace of mind through a smart, easy-to-use app. Our goal is to be a trusted partner as they navigate the often complex world of insurance.”

Transparency Scape has also partnered with key regulatory bodies, including the National Insurance Commission, NAICOM, Nigerian Insurers Association (NIA), Chartered Insurance Institute of Nigeria, CIIN, The Nigerian Council of Registered Insurance Brokers, NCRIB, to ensure full compliance and uphold the highest industry standards.

“We extend our sincere gratitude to our regulators for fostering innovation within Nigeria’s insurance space,” Ifaturoti added. “We are also grateful to our insurance partners for their trust and for allowing us to integrate their APIs. This has been instrumental to our success.”

Speaking further on the impact of the launch, Olufela Olurin, chief operating officer of Transparency Scape Insurance Brokers Limited, said,

“InsurEase reflects our core values of transparency and trust. By breaking down the barriers to insurance accessibility, we have made it easier for Nigerians to secure the protection they need. Our app simplifies the entire insurance journey, giving users greater peace of mind and security for their future.”

InsurEase is now available for download on the Google Play Store and Apple App Store. For more information about the company, visit the website or follow us on Instagram, Twitter, Facebook, and LinkedIn.

The NPF recently announced that effective February 1, 2025, it will commence a nationwide enforcement of the Third-Party Motor Insurance Policy.

The initiative, which aligns with the provisions of Section 68 of the Insurance Act 2003 has been welcomed by NAICOM and the NIA respectively, noting that it is a significant step towards strengthening compliance, ensuring road safety, and protecting motorists and third parties on Nigerian roads.

Speaking on the commencement of the enforcement, Chief Marketing Officer, AXA Mansard Insurance Plc, Adebola Surakat, said with defaulters facing fines of up to ₦250,000, the tendency of unscrupulous elements selling fake motor insurance policies to unsuspecting members of the public may be on the rise. 

She advises the insuring public to secure all their insurance policies, including motor insurance from only registered companies and their accredited agents. 

“As a brand committed to protecting our customers and the insuring public, we strongly advise motorists to be cautious and obtain their insurance policies only from licensed and trusted insurers. 

The rise in enforcement may lead to a surge in counterfeit policies, leaving motorists exposed to financial risks. 

As a leader in the industry, we recognise that raising the awareness at this time is the right thing to do because if we allow the public to run into the wrong hands, it will be a setback for the tremendous work that we have been doing to build trust in insurance.

When people buy the counterfeit insurance policy, they will not be able to present it to the police nor will they be able to claim with it if any risks manifest. The backlash will be on the insurance sector, not the fraudulent agents. So, we are taking it as a responsibility to create awareness”. 

Surakat explained that people can visit either the NAICOM or NIA website for a list of registered insurance companies in Nigeria. 

“We have even made it simpler at AXA Mansard, any type of motor insurance ranging from Third Party Motor Insurance to Comprehensive Motor Insurance can be purchased straight from our website. You can get your motor insurance certificate in less than five minutes on either our website, mobile app or any of our welcome centres nationwide”, she said. 

“We have continuously demonstrated reliability through prompt claims payment and seamless customer experience. So, we assure the public of an excellent customer experience throughout the life cycle of the policy.”

AXA Mansard reassures its customers that it remains steadfast in its commitment to providing affordable, accessible, and genuine motor insurance solutions to protect Nigerian motorists from unnecessary financial liabilities.

“We understand the challenges that come with compliance, so we urge all vehicle owners to prioritize authenticity when purchasing their Third-Party Motor Insurance and avoid the risks associated with fake policies,” Surakat added.

The association made the presentations when the new NAICOM leadership paid a courtesy visit to association recently in Lagos.

Olusegun Omosehin, the commissioner for Insurance accompanied by his deputies, Dr. Usman Jankara and Dr. Olawoye Gam-Ikom, visited the NIA to discuss collaborative efforts for advancing the insurance sector.

Omosehin, at the visit, emphasied his commitments to fostering a robust and stable insurance industry that prioritises the protection of policyholders and beneficiaries.

“My mandate is to ensure a very safe, sound, and stable insurance sector that can protect policyholders, and consumers, and build public trust in the insurance industry.” he submitted.

He further outlined his administration’s agenda, focusing on increasing insurance penetration and ensuring efficient and prompt claims settlements.

Omosehin underscored the importance of compliance with industry regulations to achieve NAICOM’s vision and urged stakeholders to prioritize regulatory adherence.

In response, NIA members, represented by their CEOs, shared their concerns and expectations to help realise NAICOM’s vision for the industry;

1. They implored the NAICOM leadership to revisit the placement of insurance business adverts for greater visibility and awareness.
2. The sought NAICOM’s support on NIA’s claims payment committee to be established which would help facilitate prompt settlements.
3. Enforcing insurance for public buildings and construction projects to ensure safety.
4. Enhancing collaboration with government agencies for regulatory efficiency.
5. Digitalizing agency license processes for improved speed and convenience.
6. Reconstituting the IICC committee to drive industry growth and development.
7. Supporting the implementation of the Nigerian Insurance Industry Portal (NIIP) for better digitalisation and accessibility.
8. Collaborating with PenCom on group life enforcement to ensure compliance.
9. Establishing a maximum retention period for claims records to improve data management.
10. Accelerating the approval of new products to drive innovation.
11. Considering industry perspectives in policymaking for inclusive decisions.
12. Segmenting industry players to promote specialization and competitiveness.
13. Ensuring timely approval of principal officers for leadership stability.
14. Forming strategic partnerships with the government to boost economic growth.
15. Speeding up the transformation roadmap for timely implementation.
16. Sanctioning members involved in premium rate cutting to enforce compliance.
17. Promoting public-private sector collaboration in government business.
18. Ensuring market discipline to promote a culture of compliance and accountability.
19. NAICOM and NIA to worke collaboratively towards the growth and development of Nigeria’s insurance industry.

President Bola Tinubu launched the first phase of the Consumer Credit Scheme on April 21st.

The program allows working citizens to access loans for important purchases.

Although currently, only working people with government jobs (civil servants) can apply. But in the future, more people will be able to join the program.

The NAICOM Boss, hinted on the efficacy of embedded  insurance scheme  in the national credit scheme, when  his management team welcomed members of the Constitutional Committee on “Mobilisation and Diversification” of the Revenue Mobilisation Allocation and Fiscal Commission, led by Engr. Sani Mohammed Baba, during their working visit to NAICOM on Tuesday, this week in Abuja.

A statement by NAICOM stated that the primary agenda of the visit was to explore collaborative opportunities to advance the diversification of the Nigerian economy.

Omosehin, in his opening remarks, reaffirmed the critical role of the insurance sector regulator in supervising, regulating, and safeguarding the interests of insurance policyholders.

He highlighted insurance’s pivotal role in mobilising savings for long-term developmental projects and enabling businesses to thrive while managing risks effectively.

He also stressed the Commission’s commitment to ensuring insurance companies meet their obligations, thus contributing to the sustainability of the economy.

Engr. Sani Mohammed Baba, who led the official visit, emphasised the importance of revenue generation, institutional expansion, and employment creation for Nigerians through collaborative efforts.

The Commissioner for Insurance also acknowledged President Bola Ahmed Tinubu GCFR’s ambitious goal of growing the Nigerian economy $1 trillion by 2026.

He expressed the insurance sector’s intent to significantly contribute to this objective.

Omosehin highlighted the need for continuous advocacy and sensitization of government institutions about the vital role of insurance in national economic development.

With this partnership, FintechNGR will set to achieve similar feat it did in 2019 when it developed Fintech Adoption Roadmap Policy in the Capital Market in partnership with the Security & Exchange Commission under the aegis of Nigerian Capital Markets.

Similarly, FintechNGR is partnering with Galaxy Backbone, an agency of the Federal Government in charge of Satellite, Cloud and ICT management to develop a Nigerian Domestic Cloud initiative that will domesticate cloud businesses in Nigeria.

The inauguration of the Insurance Roadmap Committee by Mr Sunday Thomas, the Insurance Commissioner, was a significant step towards driving digital transformation in the insurance sector.

According to Mr Thomas ‘the policy will further help the sector to leverage technology to enhance transparency, speed, and efficiency in insurance services, ultimately making insurance more accessible and affordable in the overall interest of driving financial inclusion’.

In his words, Dr Stanley Jacob, vice president of FintechNGR says;

‘the policy will open market and market access, drive digital presence, and aid insurance penetration’.

His comments highlight the potential impact of the policy on expanding market opportunities and increasing the accessibility of insurance services.

Similarly, the partnership with Galaxy Backbone  would promote indigenous cloud services, develop cloud adoption frameworks, and make cloud infrastructure available to startups and Nigerians at affordable rates.

These two initiatives aim to drive innovation in the financial services sector and help Nigerians harness data, access array of opportunities, make insurance and emerging technologies more attractive.

Overall, the projects are a further testament to FintechNGR’s commitment to driving innovation and collaboration within the ecosystem, with a focus on leveraging technology to enhance efficiency and accessibility. It also attests to the openness of the Regulators to deepening innovation as they create balanced policies.

Omosehin said this on Thursday, when members of the Governing Council of the Nigerian Insurers Association led by the incoming Chairman, Kunle Ahmed, paid a courtesy visit to National Insurance Commission in Abuja.

The CFI, affirmed the Executive Management’s ambition to drive growth in the Nigerian Insurance Market.

During the meeting, the NIA incoming Chairman, extended congratulations to the recently appointed executive management of NAICOM and expressed gratitude to the Commission for its pivotal role in maintaining a fair and stable insurance sector.

He emphasized the importance of initiating the implementation of the ten-year strategic plan and finalizing the consolidated insurance bill.

He further expressed willingness to collaborate with the new executive, expressing confidence in their ability to elevate the insurance sector to greater heights.

The NIA delegation, was briefed on the Commission’s ongoing review of its strategic plan to align it with the Nigerian Insurance Industry’s 10-year strategic plan.

Overall, the meeting showcased a collaborative spirit between NAICOM and NIA, highlighting a shared commitment to advancing the insurance sector and protecting the interests of consumers.

The new board, comprises: Ms. Halima Kyari chairperson,  Mr. Olusegun Omosehin (Commissioner for Insurance); Mr. Olawoye Gam-Ikon (Deputy Commissioner, Technical Operations)

Others are; Dr. Usman Jimada (Deputy Commissioner, Finance and Administration); Dr. Miriam Kachikwu; Mr. Adeniyi Fabikun and Mr. Umar Mohammed.

The new NAICOM board, is tasked with ensuring a safe, sound, and stable industry while protecting policyholders, serving the public interest, and fostering trust within the sector.

During the ceremony, Edun emphasised the critical role the insurance sector plays in stabilising the economy but acknowledged the immense responsibility entrusted to the board.

“The weight of this responsibility and the significance it holds is not lost on me,” he said.

He expressed full confidence in the board’s ability to deliver, citing their proven track records and experience.

Edun, noted the nation’s long-term saving potential and its demographic advantage with a youthful population and urged the board to leverage these factors to drive economic growth.

“Effective resource utilization within the insurance sector is crucial,” Edun stressed.

The board’s inauguration follows President Bola Tinubu’s approval of their appointments on April 19th.

He made this known in at the 8th BusinessToday annual conference & exhibition in Lagos.

Delivering a keynote address with the theme, “The World of AI: How Insurance and Pension Sectors Can Explore Opportunities for Market Penetration”, in Lagos, Thomas, who was represented by Ajibola Olabisi Bankole, the deputy director, Lagos Office of NAICOM, urged insurance operators to increase adoption in this area as it gives better productivity and enhanced profitability, while ensuring quick service delivery and claims payment to insurance consumers.

Technology adoption, he said, is part of the 10-year roadmap of the insurance industry, stating that NAICOM, as a regulator, will continue to evolve policies that will engender the growth of the industry, increase penetration and contribute to the nation’s GDP.

Earlier in his Goodwill message, Mr. Tope Smart, the conference chairman who is also the chairman of NEM Insurance Plc, noted the level of insurance penetration in Nigeria when benchmarked with the global penetration, saying that a lot of factors were responsible for the increase in penetration level.

He said lack of or low enforcement is affecting the adoption of compulsory insurances even as he said that the industry is working assiduously to partner agencies responsible for enforcement so as to increase insurance adoption.

“It is quite saddening that out of a population of 200 million, only about three million people are actually insured. Lack of enforcement is a challenge but the industry is working round the clock to increase enforcement through the regulatory and enforcement bodies.

“Consumers’ apathy due to bad experience they had in the past is affecting policy renewals but I can assure Nigerians that there are various complaint avenues for people to lodge complaints. If your legitimate claims are not settled, you can approach Nigerian Insurers Association (NIA) and NAICOM; if your complaints are genuine, they will be definitely resolved,” he assured.

Mr. Edwin Igbiti, the president, Chartered Insurance Institute of Nigeria (CIIN), said the growing insurance industry will require that the nation’s economy be derisked, while seeking partnership with government and other stakeholders to deepen insurance penetration.

He submitted that AI will increase insurance premium growth, enhance service delivery and ensure that the insurance sector contributes more to the nation’s Gross Domestic Product (GDP).