The Association of Registered Insurance Agents of Nigeria (ARIAN) has raised concerns over what it describes as the persistently low level of insurance penetration in the country, particularly highlighting a near-absence of structured industry operations across parts of Northern Nigeria.
The warning was issued by Mayowa Olatubosun, the president of ARIAN, during a recent Insurers’ Committee meeting held in Lagos, where industry stakeholders gathered to review ongoing reforms and challenges affecting insurance distribution.
Olatubosun noted that while most insurance companies continue to concentrate their marketing efforts, branch networks, and strategic investments in Lagos and select southern urban centres, large parts of Northern Nigeria remain significantly underserved.
According to him, this imbalance has left vast economic corridors without adequate insurance coverage, exposing agricultural ventures, transport operators, traders, and small and medium-sized enterprises to unmanaged risks.
He warned that in several northern states, the absence of visible branch offices, certified agents, and retail insurance structures has contributed to what he described as a “near-zero operational presence,” a situation he said contradicts the industry’s broader financial inclusion goals.
Beyond the issue of low penetration, Olatubosun also linked the weak physical presence of insurers in the region to the rising incidence of fake insurance products. He argued that the absence of verified corporate outlets and licensed intermediaries creates an enabling environment for fraudsters to exploit unsuspecting members of the public with counterfeit policies.
He stressed that strengthening legitimate insurance structures across underserved regions would be key to restoring trust and reducing fraud in the sector.
“The industry cannot achieve its true potential under the current lopsided distribution arrangement,” he said, urging regulators and underwriting firms to prioritise the deployment of licensed agents to grassroots communities across the North.
He further called for a deliberate expansion into states such as Borno, Sokoto, and Jigawa, arguing that these markets have remained largely untapped for decades despite their economic potential.
Reacting to the concerns, members of the Insurers’ Committee, which includes the executive management of the National Insurance Commission (NAICOM) and managing directors of insurance companies in Nigeria, described the submission as timely and critical to the long-term sustainability of the industry.
They noted that expanding insurance reach beyond traditional urban centres would be essential to deepening penetration, improving trust, and strengthening the sector’s contribution to national economic resilience.
