Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Repositioning Insurance Sales in Nigeria: Challenges, Emerging Trends, and Future Prospects in the Digital Economy

Falade, A. F. PhD

Abstract

The insurance industry continues to play an integral part in financial systems worldwide by providing risk shift, safeguarding assets, raising capital and ensuring economic health. The Nigerian insurance industry still has a number of issues of low penetration, low consumer confidence, inadequate awareness of the industry and poor sales performance, despite being the largest economy in Africa. The industry's contribution to development and financial inclusion has been limited by these difficulties. At the same time, the growth of the digital economy has revolutionized the way consumers act, how businesses operate and how services are provided in various sectors. As a result, insurance companies are increasingly forced to re- think the way they sell insurance products to compete in a tech-focused world. The study will seek to critically review the issues that face the insurance sales environment in Nigeria, discuss the technological and market trends affecting insurance distribution environment and assess the future prospect of insurers in Nigeria in the digital economy. The study builds on the Technology Acceptance Model, Diffusion of Innovation Theory and literature on digital transformation and Insurtech and concludes that digital transformation and integrating digital technologies, customer-centric approaches, data-driven systems and innovative distribution channels are key considerations in repositioning insurance sales. The paper concludes that digital transformation offers insurance companies unparalleled opportunities to boost insurance penetration, enhance customer experience and extend market reach in Nigeria. But it will take some investments in technology infrastructure, regulatory change, digital literacy and trust building in order to realize those benefits.

Keywords

Digital economyDigital transformationInsurance penetrationInsurance salesInsurtech

References

Abdelwahed, M., & Elshandidy, T. (2025). How the digital economy is revolutionizing marketing management and driving sustainable development. Sustainability, 17(3), 1130. https://doi.org/10.3390/su17031130 Adebayo, T. S., & Oladipo, O. T. (2024). Digitalization of insurance claim services and efficient customer service delivery in Nigeria. International Journal of Business and Management Invention, 13(2), 1–10. https://doi.org/10.35629/8028-13020110 Ahmad, S., Karim, R., Sultana, N., & Lima, R. P. (2025). InsurTech: Digital transformation of the insurance industry. In Financial landscape transformation: Technological disruptions (pp. 287–299). Emerald Publishing Limited. https://doi.org/10.1108/978-1- 83753-750-120251016 Akintaro, S. (2025, September 15). NAICOM, fintech players join forces to increase insurance penetration in Nigeria. Nairametrics. https://nairametrics.com/2025/09/15/naicom- fintech-players-join-forces-to-increase-insurance-penetration-in-nigeria/ Alghathian, G. A., & Alahmad, A. A. (2025). The effect of emerging technological risks on insurance companies' performance: Challenges and solutions in the era of digital transformation. An-Najah University Journal for Law and Economics, 2(2), 12-19. Anaesoronye, M. (2026a, June 9). African insurance leaders push innovation, digital reach for growth. BusinessDay. https://businessday.ng/insurance/article/african-insurance- leaders-push-innovation-digital-reach-for-growth/ Anaesoronye, M. (2026b, June 5). CBI: Insurtech revolution could drive insurance adoption among 200 million Nigerians by 2030. Nairametrics. https://nairametrics.com/2026/06/05/cbi-insurtech-revolution-could-drive-insurance- adoption-among-200-million-nigerians-by-2030/ Capital Express Assurance Limited. (2026, May 25). When the algorithm meets the actuary. Capital Express Assurance. https://capitalexpressassurance.com/when-the-algorithm- meets-the-actuary/ Deloitte. (2025). 2026 global insurance outlook: Changing customer expectations, broker consolidation, and the importance of modernization could reshape the insurance landscape. Deloitte Insights. https://www.deloitte.com/gr/en/Industries/insurance/perspectives/2026-global- insurance-outlook.html Ebenezer, P., Makinde, G. O., & Ayodeji, B. (2026). The impact of strategic capabilities on manufacturer’s productivity: A conceptual review. International Journal of Social Sciences and Management Research, 12(1), 113–127. https://doi.org/10.56201/ijssmr..pg113.127 Ehiorobo, O. A. (2020). Appraising technological resources on sale and distribution of insurance products in Nigeria: The moderating role of artificial intelligence. Academic Journal of Economic Studies, 6(3), 12–21. https://econpapers.repec.org/article/khescajes/v_3a6_3ay_3a2020_3ai_3a3_3ap_3a12 -21.htm Enhancing Financial Innovation & Access . (2018). Exploring the Nigerian insurance market (A2F 2018 survey report). https://www.efina.org.ng/wp- content/uploads/2018/12/EFInAExploringTheNigerianInsuranceMarket_2.pdf Federal Government of Nigeria. (2025, August 5). President Tinubu assents to Nigerian Insurance Industry Reform Bill 2025 to drive financial sector transformation. The State House, Abuja. https://statehouse.gov.ng/president-tinubu-assents-to-nigerian- insurance-industry-reform-bill-2025-to-drive-financial-sector-transformation/ Financial Nigeria. (2025, March 18). Mobile technologies contribute $240 billion to Africa’s economy. https://www.financialnigeria.com/mobile-technologies-contribute-240- billion-to-africa-s-economy-news-2991.html GrECo Group. (2025, May 14). Digital transformation reshapes the insurance industry for the 21st century. https://greco.services/digital-transformation-reshapes-the-insurance- industry-for-the-21st-century/ Gupta, A. P. (2024). The role of fintech in streamlining insurance processes and reducing administrative overheads. International Journal of Finance, 37(2), 21–31. https://www.researchgate.net/publication/384012595_The_Role_of_Fintech_in_Strea mlining_Insurance_Processes_and_Reducing_Administrative_Overheads Horvey, S. S., Godspower-Akpomiemie, E. I., & Boateng, R. A. (2025). An empirical evaluation of the technology acceptance model for peer-to-peer insurance adoption: Does income really matter? Journal of Risk and Financial Management, 18(4), 209. https://doi.org/10.3390/jrfm18040209 Ibebi, C. (2025). Insurance penetration and manufacturing sector growth: A time series evidence from Nigeria. IIARD International Journal of Economics and Business Management, 11(5), 60–71. https://doi.org/10.56201/ijebm..pg60.71 Iliyas, M., & Barca, M. (2025). A chronological review of resource-based theory and future research directions. Journal of Management World, 2025(4), 41–53. https://doi.org/10.53935/jomw.v2024i4.1153 Indepth Research Institute. (2026, February 24). Embedded insurance trends in Africa: What businesses must know now. https://indepthresearch.org/blog/embedded-insurance- trends-in-africa/ Kajwang, B. (2022). Effect of digital distribution channels on performance of insurance sector. Journal of Marketing Studies, 5(1), 32–42. https://doi.org/10.47941/jms.957 Khakhar, M. B. D., & Dmello, M. M. G. (2024). Influence of Insurtech on insurance penetration: Developed vs developing countries. Journal of Nonlinear Analysis and Optimization, 15(1), 1-9. Malifete, L., Mushavhanamadi, K., Adekunle, S., & Aigbavboa, C. (2026). Digital transformation in the insurance industry: Challenges and strategic insights. Risks, 14(5), 10-14. https://doi.org/10.3390/risks14050105 Mogaji, E., Viglia, G., Srivastava, P., & Dwivedi, Y. K. (2024). Is it the end of the technology acceptance model in the era of generative artificial intelligence?. International Journal of Contemporary Hospitality Management, 36(10), 3324-3339. Morgan, L. (2023, March 23). Product design approaches for inclusive property insurance. Impact Insurance. https://medium.com/impact-insurance/product-design-approaches- for-inclusive-property-insurance-d490ddc4e907 Mulyana, R., Rusu, L., & Perjons, E. (2023). How hybrid IT governance mechanisms influence digital transformation and organizational performance in the banking and insurance industry of Indonesia. In The International Conference on Information Systems Development (pp. 1-12). Association for Information Systems . Nasution, H., Muafi, M., El-Qadri, Z. M., & Suprihanto, J. (2025). Impact of digital business transformation on organizational ambidexterity and performance in Indonesian insurance firms. Intangible Capital, 21(1), 1-20. National Insurance Commission . (2025). Nigerian insurance industry reform act , 2025. https://naicom.gov.ng/wp-content/uploads/2025/08/NIIRA-2025.pdf National Insurance Commission . (2026, May 29). NAICOM issues first insurtech licence, reinforcing commitment to innovation and market integrity. https://naicom.gov.ng/2026/05/29/naicom-issues-first-insurtech-licence-reinforcing- commitment-to-innovation-and-market-integrity/ Ndeudjeu, J. N., & Potgieter, M. (2025). Factors influencing online insurance purchasing decision-making among car owners in Mafikeng. Edelweiss Applied Science and Technology, 9(11), 160–172. https://doi.org/10.55214/2576-8484.v9i11.10813 Nguyen, H. T. (2020). Digital transformation in insurance distribution: International experience and suggestions for Vietnam. Asian Journal of Science and Technology, 10(4), 9628–9632. https://www.researchgate.net/publication/339473559_DIGITAL_TRANSFORMATIO N_IN_INSURANCE_DISTRIBUTION_INTERNATIONAL_EXPERIENCE_AND_ SUGGESTIONS_FOR_VIETNAM Olatunbosun, A., Ogunjobi, D. T., Esther, A. I., Oluwadare, O. E., & Olaide, A. G. (2025). A review of ethical and data privacy challenges in the adoption of artificial intelligence technologies in Nigerian academic libraries. International Journal of Science and Research Archive, 17(3), 285–297. https://doi.org/10.30574/ijsra.2025.17.3.3228 Organisation for Economic Co-operation and Development. (2025). Global insurance market trends 2025. OECD Publishing. https://doi.org/10.1787/0d11ecf4-en Orimisan, B. (2025, August 18). Insurer unveils AI-powered chatbot to improve customer experience. The Guardian Nigeria News. https://guardian.ng/business- services/insurance/insurer-unveils-ai-powered-chatbot-to-improve-customer- experience/ Orimisan, B. (2026, June 8). Digital insurance drive targets 200m Nigerians by 2030. The Guardian Nigeria News. https://guardian.ng/news/digital-insurance-drive-targets- 200m-nigerians-by-2030/ Oyewo, D. (2025, September 26). Nigerian insurers urged to scale digital operations or lose relevance. The Punch. https://punchng.com/nigerian-insurers-urged-to-scale-digital- operations-or-lose-relevance Pandey, S., & Ara, U. (2026). Role of insurance. The Journal of Insurance Institute of India. https://www.researchgate.net/publication/400344299_ROLE_OF_INSURANCE Pandieswari, K., & Arumugam, U. (2026). Artificial intelligence in insurance: Transforming risk assessment and claims management. International Multidisciplinary Research Journal Reviews, 3(1), 1–7. https://doi.org/10.17148/IMRJR.2026.030110 Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press. https://teddykw2.wordpress.com/wp-content/uploads/2012/07/everett-m-rogers- diffusion-of-innovations.pdf Schorr, A. (2023). The technology acceptance model and its importance for digitalization research: A review. In N. Gerber & V. Zimmermann (Eds.), International Symposium on Technikpsychologie 2023. Sciendo. https://doi.org/10.2478/9788366675896-005 Yaneva, T. (2022). Digital transformation of insurance sector. Izvestia Journal of the Union of Scientists-Varna: Economic Sciences Series, 10(1), 97–104. https://doi.org/10.56065/IJUSV-ESS.2021.10.1.97 Yayock, Y., Okundalaiye, H., & Abiodun, O. (2023). Social media usage and its impact on business performance: An application of diffusion of innovation theory. Journal of Management Information and Decision Sciences, 26(3), 1–14. Yi, X., Mahdzan, N. S., & Zainudin, R. (2025). InsurTech innovation and insurance performance: A technology-driven analysis of digital transformation. SN Computer Science, 6(8), 1002.

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT

Bridging Legal, Financial, and Data Governance in Enterprise AI: Emerging Trends

Author: Funmilayo Ashore-Onisemo, Ebehiremen Faith Iziduh, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa

Macroeconomic Policies and Economic Stability in Nigeria

Author: Abel-Tariah Emmanuel Onate, Okon, Ekanem Nsikhe, Nwenyi Francis Onwe

Determinants of Bank Liquidity in Nigeria

Author: Nelson Johnny Ebifemo-ere Stephen