NIA urges Nigerians to embrace insurance as a vital tool for financial security

Joy Agwunobi

In a country where spirituality often overshadows financial planning, the Nigerian Insurers Association (NIA) has reaffirmed the urgent need for Nigerians to embrace insurance as a practical tool for resilience, risk mitigation, and financial stability.

This renewed call comes amid ongoing efforts by industry regulators, insurance firms, and other stakeholders to demystify insurance and correct deeply ingrained beliefs that faith and prayer alone are enough to shield against life’s uncertainties.

Speaking during a recent televised interview on the theme “Ensuring Financial Stability,” Bola Odukale, the director-general of the NIA, emphasised the critical importance of sustained public education and awareness about insurance. She lamented that, despite efforts, many Nigerians still fail to appreciate the value and benefits of insurance due to lack of understanding and cultural biases.

“We are very religious people in Nigeria, and while that’s not a bad thing, it does not negate the reality that life must go on even after unfortunate incidents like the death of a breadwinner,” Odukale stated, adding that “what insurance does is provide a buffer — a means to cushion the effects of unforeseen events. But a lot of people simply don’t understand this, and that’s why we continue to prioritise awareness and education.”

Odukale pointed out that financial security is no longer a luxury in today’s dynamic and often unpredictable world, especially with the changing nature of work, business, and family structures. According to her, insurance remains one of the most effective tools for managing risks and ensuring stability—be it in individual lives, businesses, or the national economy.

“Financial stability promotes growth, progress, and empowerment. It creates room for advancement—whether you’re an individual, a company, or even a country. Insurance serves as a foundation for that stability by helping us manage risks effectively, whether it’s death, disaster, accidents, or business disruptions,” she said.

She noted that insurance not only offers peace of mind but also serves as a reliable safety net when tragedy strikes.“When you have insurance, you can rest easy knowing that should the unexpected occur, you are covered. You can focus on moving forward, not scrambling for survival,” Odukale added.

In her advocacy, Odukale also shed light on the diverse array of insurance products available in the market, stressing that insurance can be tailored to fit virtually every aspect of human life. These include life insurance, property insurance, education insurance, motor insurance, business continuity policies, general disability cover, and Goods in Transit (GIT) insurance, among others.

“For instance, Goods in Transit insurance protects goods being moved from one location to another, providing security for business owners. For vehicle owners, the law requires at least a Third Party insurance policy. As a parent, your children’s future education should be insured. So wherever you are in life, there’s an insurance product that speaks to our needs,” she stated.

Highlighting the need for strategic protection in a world of uncertainties, Odukale called on individuals, businesses, and institutions to embrace a more deliberate and structured approach to insurance.

She emphasised that effective insurance coverage begins with understanding and managing risks, stating that risk identification, assessment, and mitigation must form the core of any proactive financial protection plan.

 “In risk management, the first thing is identifying what could go wrong in your personal life, business, or operations. Then you assess how severe the impact could be. Once you have done that, you think of how to mitigate that impact, and insurance is one of the strongest tools in doing that,” she said.

Odukale pointed out that insurance policies should not follow a one-size-fits-all model, but rather be tailored to the unique circumstances and life stages of individuals. She urged Nigerians to consider where they are in life when selecting policies. “The best insurance policy depends on your circumstances. Are you a young parent? You might need an education policy. Are you a business owner? Then business continuity insurance is crucial. Everyone should at least have life insurance, it’s foundational,” she added.

The director general further stressed the importance of making informed choices and embedding risk-conscious thinking into all aspects of planning. She stated that it is not enough to simply understand the risks one faces—there must also be deliberate efforts to reduce or share those risks. This, Odukale said, could be achieved through a combination of insurance coverage, risk pooling mechanisms, or collaborations with third parties.

She also appealed to insurance providers to respond to the evolving needs of the public by designing more accessible and relevant products. “We will  continue to provide awareness and education and try to put products together that would meet the needs of the people outside there,” the DG said, noting the critical role of insurers in closing protection gaps across different segments of society.